UPSC Prelims 2017 CSAT Paper II · Q6 of 79 Comprehension medium

Passage

Passage—6 By 2020, when the global economy is expected to run short of 56 million young people, India, with its youth surplus of 47 million, could fill the gap. It is in this context that labour reforms are often cited as the way to unlock double-digit growth in India. In 2014, India's labour force was estimated to be about 40 per cent of the population, but 93 per cent of this force was in unorganized sector. Over the last decade, the compound annual growth rate (CAGR) of employment has slowed to 0·5 per cent, with about 14 million jobs created

Which of the following is the most rational inference from the above passage?

  1. (a) India must control its population growth so as to reduce its unemployment rate.
  2. (b) Labour reforms are required in India to make optimum use of its vast labour force productively. ✓ UPSC's answer
  3. (c) India is poised to achieve the double-digit growth very soon.
  4. (d) India is capable of supplying the skilled young people to other countries.

Why the answer is (b)

• The passage states that 93% of India's labour force is in the unorganized sector and employment growth has slowed to 0.5% CAGR.

• It explicitly links labour reforms to the potential for unlocking double-digit growth in India.

• The context of a 47 million youth surplus highlights the need to utilize this demographic dividend effectively.

• Therefore, the most rational inference is that reforms are necessary to make the vast labour force productive to achieve economic growth.

• This aligns directly with option (b), which connects labour reforms to the productive use of the labour force.

Why the other options are wrong

(a) India must control its population growth so as to reduce its unemployment rate.
The passage does not suggest that controlling population growth is the solution to unemployment; it focuses on utilizing the existing youth surplus through reforms.
(c) India is poised to achieve the double-digit growth very soon.
The passage states that reforms are cited as a way to *unlock* double-digit growth, implying it has not yet been achieved, rather than stating India is poised to achieve it very soon.
(d) India is capable of supplying the skilled young people to other countries.
While the passage mentions India could fill a global gap, the primary focus is on domestic labour reforms for growth, not specifically on exporting skilled young people.

Asked in the CSAT Paper II of the UPSC Civil Services Preliminary Examination 2017, held on 18 June 2017. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

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