Correct Option (C)
Both 1 and 2
The passage critically evaluates economic liberalization in India, highlighting its origins in governmental economic problems rather than long-term developmental objectives or the needs of the populace. It explicitly states that there were "limitations in conception and design," leading to issues such as "jobless growth, persistent poverty and rising inequality." Furthermore, it identifies "agriculture, infrastructure, industrialization and education" as "four quiet crises" that constrain future prospects and require resolution for "meaningful development."
- Inference 1 is correct: The acknowledgement of "limitations in conception and design" and the resulting problems like "jobless growth, persistent poverty and rising inequality" directly imply a need to re-evaluate the foundational approach to economic development. This necessitates a rethinking and redefinition of the State's economic role to ensure that growth translates into equitable and sustainable development, addressing the identified shortcomings.
- Inference 2 is correct: The passage identifies "agriculture, infrastructure, industrialization and education" as critical "crises" and "constraints." These sectors are fundamental to both economic and social development. The existence of such profound crises, alongside persistent poverty and rising inequality, strongly suggests that policies in these vital areas have either been inadequately implemented or have suffered from insufficient investment, failing to achieve desired developmental outcomes.
Incorrect Options:
Options (A) "1 only", (B) "2 only", and (D) "Neither 1 nor 2" are incorrect because, as established, both Inference 1 and Inference 2 are rational and logical deductions that can be made from the provided passage.