Question

Read the following passage and answer the question that follows:

As infrastructure investments (as a proportion of GDP) have fallen sharply over the twelfth five year plan period (2013-17), attempts to revive the investment cycle are welcome. However, considering that infrastructure investment over the past six years adds up to Rs 51.2 lakh crore, doubling this over the next six years is a tall order. These are not normal times. The economy has slowed down considerably. The financial system remains choked. Add to that an overleveraged corporate sector that is in no mood to invest, and achieving these targets looks increasingly difficult. And a broad-based pick-up in growth is unlikely in the near term. Reviving the investment cycle requires more than just ambitious targets.

The author’s usage of the word ‘choked’ in the passage implies which of the following?

विकल्प

• The economy is doomed and cannot be revived in any way.

• The economy has to be revived by adopting the socialist ways of managing finance.

• The economy has witnessed some significant downfalls that had never happened before.

• The economy is in a pitiable state and is in urgent need of revival.

Answer 1

The economy is in a pitiable state and is in urgent need of revival.

Explanation:

The economy is doomed and cannot be revived in any way that is too extreme.

The economy has witnessed some significant downfalls that had never happened before cannot be inferred. In light of the passage, we are not sure if the economic downturn is happening for the first time.

The economy has to be revived by adopting the socialist ways of managing finance is out of scope.