UPSC Prelims 2017 CSAT Paper II · Q64 of 79 Comprehension medium

Passage

Passage—4 The medium term challenge for Indian manufacturing is to move from lower to higher tech sectors, from lower to higher value-added sectors, and from lower to higher productivity sectors. Medium tech industries are primarily capital intensive and resource processing; and high tech industries are mainly capital and technology intensive. In order to push the share of manufacturing in overall GDP to the projected 25 per cent, Indian manufacturing needs to capture the global market in sectors showing a rising trend in demand. These sectors are largely high technology and capital intensive.

Which among the following is the most logical and rational inference that can be made from the above passage?

  1. (a) India's GDP displays high value-added and high productivity levels in medium tech and resource processing industries.
  2. (b) Promotion of capital and technology intensive manufacturing is not possible in India.
  3. (c) India should push up the public investments and encourage the private investments in research and development, technology upgradation and skill development. ✓ UPSC's answer
  4. (d) India has already gained a great share in global markets in sectors showing a rising trend in demand.

Why the answer is (c)

• The passage states that to increase manufacturing's share in GDP to 25%, India must capture global markets in high-technology and capital-intensive sectors.

• It defines high-tech industries as being mainly capital and technology intensive, implying a need for significant investment in these areas.

• To achieve this shift from lower to higher tech and value-added sectors, the logical step is to increase investment in the necessary inputs: capital, technology, and human capital (skills).

• Therefore, pushing up public investments and encouraging private investments in R&D, technology upgradation, and skill development is the rational inference required to meet the stated goal.

• This aligns with the requirement to move into sectors that are capital and technology intensive to capture rising global demand.

Why the other options are wrong

(a) India's GDP displays high value-added and high productivity levels in medium tech and…
The passage identifies medium tech industries as primarily capital intensive and resource processing, not as displaying high value-added and high productivity levels, which are characteristics of the target high-tech sectors.
(b) Promotion of capital and technology intensive manufacturing is not possible in India.
The passage argues that India needs to capture markets in capital and technology intensive sectors, implying that promoting such manufacturing is necessary and possible, not impossible.
(d) India has already gained a great share in global markets in sectors showing a rising…
The passage states that Indian manufacturing 'needs to capture' the global market in these sectors, indicating that this has not yet been achieved, rather than stating that India has already gained a great share.

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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