UPSC Prelims 2019 CSAT Paper II · Q61 of 79 Comprehension medium

Passage

Passage - 1 India's economic footprint, given its population, still remains small compared to the US, the European Union or China. It has much to learn from other economies, yet must implement solutions that fit its unique circumstances. India especially needs an effective long-term regulatory system based on collaboration rather than the current top-down approach. Regulations seek desirable outcomes yet are repeatedly used as political tools to push one agenda or another. Often, regulations fail to consider impacts on jobs and economic growth — or less restrictive alternatives. Regulations may be used to protect local markets at the expense of more widely shared prosperity in the future. Additionally, regulations inevitably result in numerous unintended consequences. In today's hyper competitive global economy, regulations need to be viewed as "weapons" that seek cost-justified social and environmental benefits while improving the economic well-being of most citizens.

Which one of the following is the most logical, rational and crucial inference that can be derived from the above passage ?

  1. (a) A better regulatory system will help India achieve the size of economy appropriate to its population.
  2. (b) In a competitive global economy, India must use regulations strategically. ✓ UPSC's answer
  3. (c) Regulations in India do not favour its integration with today's hyper competitive global economy.
  4. (d) Job creation and economic growth should be dominant considerations in developing India's regulatory system.

Why the answer is (b)

• The passage explicitly states that in today's hyper-competitive global economy, regulations need to be viewed as 'weapons' that seek cost-justified social and environmental benefits while improving economic well-being.

• This metaphor implies that regulations should not be passive or purely restrictive but must be deployed strategically to gain competitive advantages and ensure prosperity.

• The text criticizes the current top-down approach and the use of regulations as political tools, advocating instead for a system that fits India's unique circumstances in a competitive landscape.

• Therefore, the most logical inference is that India must adopt a strategic approach to regulation to navigate the global competitive environment effectively.

• Option (b) directly captures this core argument that regulations must be used strategically in a competitive global economy.

Why the other options are wrong

(a) A better regulatory system will help India achieve the size of economy appropriate to its…
The passage states India's economic footprint is small but does not infer that a better regulatory system will specifically help it achieve an economy size 'appropriate to its population'.
(c) Regulations in India do not favour its integration with today's hyper competitive global…
The passage argues that regulations need to be viewed as strategic tools in a competitive economy, not that they inherently disfavor integration; rather, it suggests they must be adapted to fit the competitive context.
(d) Job creation and economic growth should be dominant considerations in developing India's…
While the passage mentions that regulations often fail to consider impacts on jobs and growth, it does not state that these should be the 'dominant' considerations, but rather that regulations should seek cost-justified benefits while improving well-being.

Asked in the CSAT Paper II of the UPSC Civil Services Preliminary Examination 2019, held on 2 June 2019. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

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