Correct Option (D)
The passage indicates that neither of the assumptions is valid. It critically assesses the outcomes of economic liberalization in India, pointing to its limitations in conception and design. The text highlights adverse consequences such as jobless growth, persistent poverty, and rising inequality, and identifies internal structural challenges in agriculture, infrastructure, industrialization, and education as crucial constraints on the country's future prospects. The passage does not advocate for greater global economic integration, nor does it support the idea that liberalization alone would resolve poverty and unemployment.
Incorrect Options:
- Assumption 1: The passage does not propose greater integration with the global economy as a solution to India's economic problems or for sustaining growth and creating jobs. Instead, it emphasizes the need to resolve internal "quiet crises" in sectors like agriculture, infrastructure, industrialization, and education, suggesting that domestic structural reforms are the primary focus for meaningful development.
- Assumption 2: This assumption is directly contradicted by the passage. The text explicitly states that "Jobless growth, persistent poverty and rising inequality have mounted as problems since economic liberalization began." This indicates that economic liberalization, as implemented, has not led to the reduction of poverty or the creation of sufficient employment in the long run; rather, it has exacerbated these issues.