Direction for the following 6 (six) items: Read the following five passages and answer the items (41-46) that follow. Your answers to these items should be based on the passages only.

Economic liberalization in India was shaped largely by the economic problems of the government than by the economic priorities of the people or by the long-term development objectives. Thus, there were limitations in conception and design which have been subsequently validated by experience. Jobless growth, persistent poverty and rising inequality have mounted as problems since economic liberalization began. And all these years later, four quiet crises confront the economy; agriculture, infrastructure, industrialization and education as constraints on the country’s future prospects. These problems must be resolved if economic growth has to be sustained and transformed into meaningful development.

Which of the following is/are the most rational and logical inference/inferences that can be made from the passage?
1. It is essential to rethink and redefine the economic role of the State in the quest for development.
2. India has not made effective implementation of its policies in social sectors nor made sufficient investments in them.
Select the correct answer using the code given below.

The correct option is Both 1 and 2.

Step-by-Step Explanation:

1. Analysis of Statement 1:
The passage highlights that economic liberalization was largely shaped by the immediate economic problems of the government rather than long-term development objectives or the economic priorities of the people. It states that this resulted in limitations in conception and design, leading to persistent issues such as jobless growth, rising inequality, and quiet crises in agriculture, infrastructure, industrialization, and education. To sustain growth and transform it into meaningful development, these foundational constraints must be addressed. Therefore, it is a rational and logical inference that the State needs to rethink and redefine its economic role in order to focus on long-term development goals rather than short-term fixes.

2. Analysis of Statement 2:
The passage explicitly mentions that key social and development sectors such as education and agriculture, alongside infrastructure and industrialization, face quiet crises that constrain future prospects. The occurrence of persistent poverty, jobless growth, and education remaining a major constraint directly points to inadequate investment and ineffective implementation of policies in social sectors. Hence, Statement 2 is also a rational and logical inference that can be drawn from the text.

Since both inferences logically align with the passage, the correct answer is Both 1 and 2.