Direction for the following 7 (seven) items: Read the following seven passages and answer the items (61-67) that follow the passages. Your answers to these items should be based on the passages only.

The medium term challenge for Indian manufacturing is to move from lower to higher tech sectors, from lower to higher value-added sectors, and from lower to higher productivity sectors. Medium-tech industries are primarily capital intensive and resource processing; and high tech industries are mainly capital and technology intensive. In order to push the share of manufacturing in overall GDP to the projected 25 per cent, Indian manufacturing needs to capture the global market in sectors showing a rising trend in demand. These sectors are largely high technology and capital intensive.

Which among the following is the most logical and rational inference that can be made from the above passage?

Correct Answer: India should push up the public, investments and encourage the private investments in research and development, technology upgradation and skill development.

Step-by-Step Explanation:

Step 1: Analyze the passage content
The given passage emphasizes key points regarding Indian manufacturing:

• India needs to transition from lower to higher tech, higher value-added, and higher productivity sectors.
• High-tech industries are primarily capital and technology intensive.
• To achieve the goal of increasing manufacturing's share in GDP to 25%, India must capture global markets in high-demand, high-tech, and capital-intensive sectors.

Step 2: Evaluate the given options

• Option 1: "India’s GDP displays high value-added and high productivity levels..." – Incorrect. The passage states that moving to higher value-added and productivity sectors is a "medium term challenge," meaning India is not yet there.
• Option 2: "Promotion of capital and technology intensive manufacturing is not possible in India." – Incorrect. The passage states this transition is necessary, not impossible.
• Option 3: "India should push up the public, investments and encourage the private investments in research and development, technology upgradation and skill development." – Correct. Capturing high-tech and technology-intensive sectors logically requires substantial investments in technology upgradation, research and development, and skills.
• Option 4: "India has already gained a great share in global markets..." – Incorrect. The passage mentions that Indian manufacturing needs to capture the global market, indicating it has not achieved this yet.

Conclusion:
The most logical and rational inference drawn from the passage is that to capture high-tech and technology-intensive sectors, India must boost both public and private investments in research, development, and skill building.