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.

With reference to the above passage, the following assumptions have been made:
1. India’s economy needs to be greatly integrated with global economy so as to create large number of jobs and to sustain its growth momentum.
2. Economic liberalization would cause large economic growth which would reduce poverty and create sufficient employment in the long run.
Which of the above assumptions is/are valid?

The correct answer is Neither 1 nor 2.

Step-by-step Explanation:

Analyzing Assumption 1: "India’s economy needs to be greatly integrated with global economy so as to create large number of jobs and to sustain its growth momentum."

The passage discusses economic liberalization, its internal limitations in design, and the resulting problems such as jobless growth, persistent poverty, and rising inequality. It explicitly mentions four quiet crises: agriculture, infrastructure, industrialization, and education. Nowhere does the passage mention or assume integration with the global economy. Therefore, Assumption 1 is not valid based on the given passage.

Analyzing Assumption 2: "Economic liberalization would cause large economic growth which would reduce poverty and create sufficient employment in the long run."

The passage highlights that economic liberalization has led to "jobless growth, persistent poverty and rising inequality." It states that liberalization was shaped by government economic problems rather than long-term development objectives or people's priorities. Thus, assuming that economic liberalization would inherently reduce poverty and create sufficient employment in the long run directly contradicts the author's argument regarding its limitations and observed outcomes. Therefore, Assumption 2 is also not valid.

Since neither of the assumptions can be validly inferred from the passage, the correct option is Neither 1 nor 2.