Question

Read the following passage and answer the question that follows:

As infrastructure investments (as a proportion of GDP) have fallen sharply over the twenty-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 logical corollary to the observation made by the author in relation to investment by corporates is best reflected in which of the following options:

विकल्प

• These need to be supplemented with measures to address the weaknesses in the current public-private partnership models.

• Banks are wary of long gestation projects which will expose them to risks of asset-liability mismatches.

• Given the state of government (Centre and state) finances, creating the necessary fiscal space for this kind of investment push requires rationalizing subsidies such as food and fertilizer.

• If one ticks the boxes, for an organisation that is so old and somewhat resistant to change, it is remarkable that so many reforms have been introduced since 2014.

Answer 1

Given the state of government (Centre and state) finances, creating the necessary fiscal space for this kind of investment push requires rationalizing subsidies such as food and fertilizer.

Explanation:

Given the state of government (Centre and state) finances, creating the necessary fiscal space for this kind of investment push requires rationalizing subsidies such as food and fertilizer is an extension of the argument put forth by the author in the passage.

These need to be supplemented with measures to address the weaknesses in the current public-private partnership models is out of scope and has no connection to investment by corporates whatsoever.

Banks are wary of long gestation projects which will expose them to risks of asset-liability mismatches and  If one ticks the boxes, for an organisation that is so old and somewhat resistant to change, it is remarkable that so many reforms have been introduced since 2014 are out of scope as well.