Passage

Directions for the following 2 (two) items : The following table gives the GDP growth rate and Tele-density data of different States of a country in a particular year. Study the table and answer the two items that follow. States | Per capita income ($) | GDP growth rate (%) | Tele-density State 1 | 704 | 9·52 | 70·27 State 2 | 419 | 5·31 | 35·88 State 3 | 254 | 10·83 | 50·07 State 4 | 545 | 9·78 | 5·94 State 5 | 891 | 10·8 | 76·12 State 6 | 1077 | 11·69 | 77·5 State 7 | 900 | 8·88 | 104·86 State 8 | 395 | 5·92 | 6 State 9 | 720 | 7·76 | 82·25 State 10 | 893 | 9·55 | 96·7 State 11 | 363 | 4·7 | 57·7 State 12 | 966 | 7·85 | 63·8 State 13 | 495 | 9·37 | 52·3 State 14 | 864 | 5·46 | 97·9 State 15 | 497 | 7·48 | 62·3 State 16 | 777 | 7·03 | 93·8 State 17 | 335 | 5·8 | 49·9 State 18 | 599 | 7·49 | 47·84

With reference to the above table, the following assumptions have been made : 1. Nowadays, prosperity of an already high performing State cannot be sustained without making further large investments in its telecom infrastructure. 2. Nowadays, a very high Tele-density is the most essential condition for promoting the business and economic growth in a State. Which of the above assumptions is/are valid?

(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2 ✓ UPSC's answer

Why the answer is (d)

• Assumption 1 claims that high-performing states cannot sustain prosperity without further large telecom investments, but the table shows State 7 with the highest tele-density (104.86) has a lower GDP growth rate (8.88%) than State 6 (77.5 tele-density, 11.69% growth), disproving the necessity of the highest density for top performance.

• Assumption 2 states that very high tele-density is the most essential condition for business and economic growth, yet State 4 has the lowest tele-density (5.94) but a high GDP growth rate (9.78%), contradicting the claim that high density is essential for growth.

• State 3 has a moderate tele-density (50.07) but the second-highest GDP growth rate (10.83%), further indicating that tele-density is not the most essential condition for economic growth.

• Since both assumptions are contradicted by specific data points in the table where low or moderate tele-density coexists with high GDP growth, neither assumption is valid.

• Therefore, the correct option is (d) Neither 1 nor 2.

Why the other options are wrong

(a) 1 only: Assumption 1 is invalid because State 6 achieved the highest GDP growth rate (11.69%) with a lower tele-density (77.5) than State 7 (104.86), showing that the highest telecom investment is not required for top performance.
(b) 2 only: Assumption 2 is invalid because State 4 recorded a high GDP growth rate (9.78%) despite having the lowest tele-density (5.94) in the table, proving that very high tele-density is not an essential condition for growth.
(c) Both 1 and 2: Both assumptions are invalid as demonstrated by the counter-examples in the data, such as State 4's high growth with low tele-density and State 6's superior growth compared to State 7 despite lower tele-density.

Asked in the CSAT Paper II of the UPSC Civil Services Preliminary Examination 2018, held on 3 June 2018. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.