UPSC Prelims 2025 CSAT Paper II · Q51 of 78 Comprehension medium

Passage

There has been no democracy that has grown economically without corporate capitalism. It helps in modernizing the economy and enabling the transition from rural to urban, and agriculture to industry and services, which are inevitable with growth. It generates jobs — and there is no other way to fix a country's unemployment challenge without a further impetus to private business. Big companies can operate on a large scale and become competitive both domestically and externally. A vibrant corporate capitalist base also leads to additional revenues for the State — which in turn, can be used for greater welfare for the marginalized and creating a more level playing field in terms of opportunities.

Which one of the following statements best reflects the critical message conveyed by the author of the passage ?

  1. (a) Corporate capitalism is important for economic growth of a State and also for democracy. ✓ UPSC's answer
  2. (b) Corporate capitalism is imperative for a modern State to achieve its political objectives.
  3. (c) No State can ensure its economic survival for long without the role of corporate capitalism.
  4. (d) Corporate capitalism and democracy have mutual dependence for their continued existence.

Why the answer is (a)

• The passage opens by stating that no democracy has grown economically without corporate capitalism, establishing a direct link between the two concepts.

• It details how corporate capitalism modernizes the economy, facilitates the shift from agriculture to industry, and generates jobs to address unemployment.

• The text further explains that a vibrant corporate base increases state revenues, which are then used for welfare and creating equal opportunities.

• These points collectively argue that corporate capitalism is essential for the economic growth of a state and is intrinsically linked to the functioning of democracy.

• Therefore, option (a) best captures the author's critical message that corporate capitalism is important for both economic growth and democracy.

Why the other options are wrong

(b) Corporate capitalism is imperative for a modern State to achieve its political objectives.
The passage focuses on economic modernization and job creation rather than achieving specific political objectives.
(c) No State can ensure its economic survival for long without the role of corporate…
The text discusses economic growth and development, not the long-term economic survival of the state.
(d) Corporate capitalism and democracy have mutual dependence for their continued existence.
The passage states that democracy requires corporate capitalism for growth, but does not claim that corporate capitalism depends on democracy for its existence.

Asked in the CSAT Paper II of the UPSC Civil Services Preliminary Examination 2025, held on 25 May 2025. Question and answer key: Union Public Service Commission. Explanation: UPSC Answer Check.

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