Correct Option (A)
Statement I is valid. The passage describes path-dependent green innovation as leading to a steep learning curve, rapid cost reductions due to economies of scale and learning by doing, and smoother economic adjustments when implemented early and gradually. These outcomes-reduced costs, increased efficiency, and minimized disruption-are inherently beneficial for a country's economic growth and public finances. Although India is not specifically mentioned, the principle articulated in the passage is universally applicable to economies undertaking green investments, making the assumption that such investments would benefit India a reasonable and valid inference.
Incorrect Options:
- Statement II is not a valid assumption. The passage cites the collapse in solar energy prices as a strong example of the learning curve effect in green technology. However, it does not generalize that all other green technologies will follow the exact same pattern of price reduction or guarantee an "easy" green transition. The passage states that an "early and gradual" transition helps avoid "much disruption," which is distinct from an "easy" transition. Therefore, assuming an "easy" green transition for all other technologies based solely on the solar energy example is an overgeneralization and lacks direct support from the passage.
- Option B is incorrect because Statement I is a valid assumption.
- Option C is incorrect because Statement II is not a valid assumption.
- Option D is incorrect because Statement I is a valid assumption.