Directions (Q. 1 to 10): Read the following passage (Interview) carefully and answer the questions given below it. Certain words have been given in bold to help you locate them while answering some of the questions.
The public debt of the central government provisionally rose 2.1 per cent in July-September this fiscal on a quarterly basis.
The total public debt (excluding liabilities under the ‘public account’) of the government increased to Rs 54.12 lakh crore at September-end 2015, from Rs 53.01 lakh crore at June-end 2015, said the Quarterly Report on Debt Management for July-September 2015. “This represented a quarter-on-quarter (qoq) increase of 2.1 per cent (provisional) compared with an increase of 3.2 per cent in the previous quarter (first quarter of 2015-16),” it said.
Internal debt constituted 92.1 per cent of public debt compared with 92.3 per cent in the previous quarter. Marketable securities (consisting of rupee-denominated dated securities and treasury bills) accounted for 84.5 per cent of total public debt, the same level as on end-June 2015.
During the second quarter of the fiscal, the government issued dated securities worth Rs 1.71 lakh crore, taking gross borrowings during first half of 2015-16 to Rs 3.51 lakh crore, or 58.5 per cent of Budget Estimate (BE), vis-a-vis 58.7 per cent of BE in first half of 2014-15.
“The market borrowings calendar for the second half of 2015-16 have been adjusted down by Rs 15,000 crore to take into account expected government borrowings through the Sovereign Gold Bond and Gold Monetisation Scheme,” the report said.
The market saw a sharp correction in mid-August 2015 on account of devaluation of Chinese yuan and concerns over slowdown in the Chinese economy, which led to massive sell-off across asset classes globally.
In the run-up to the World Trade Organisation’s ministerial conference in Nairobi next week, India has said it wants the agenda finalised at Bali in 2013 to be implemented before it makes any fresh commitments.
India is not willing to make binding commitments on new areas such as labour, environment and competition that the developed countries have been trying to introduce into the WTO mandate, officials said.
WTO’s tenth ministerial conference is set to take place from December 15-18. Commerce and industry minister Nirmala Sitharaman said in an interaction with the media on Monday, “The grievance is that many things which are part of the development agenda don’t have a work programme. Even after Bali in 2013, there is no work programme like there was for trade facilitation agreement.”
While India had agreed to ratify the trade facilitation agreement (TFA), clarity is yet to emerge on the rest of the Bali package that comprises agriculture issues including public stockholding for food security purposes and export competition, cotton and issues pertaining to least developed countries. The commerce department has circulated an inter-ministerial note on TFA and the Cabinet will consider it soon.
Developed countries have been trying to insert new issues related to investment, competition, labour, government procurement, environment, climate change and global value chains. According to India’s trade negotiators, though, discussions on Mode 4, involving movement of natural persons, in the services agreement will be welcome even though the country has not taken any position on this issue.
Sitharaman said that India’s wish list has four elements – permanent solution for stockpiling for food security, safeguard mechanism in case of sudden rise in imports or fall in prices, no differential treatment only because India is a high growth emerging economy and the inclusion of peace clause in the draft ministerial declaration.
“Our effort to ensure that the unfulfilled elements of Doha find a place somewhere and work programmes are given differentiated treatment is not applicable and we have enough instruments for protecting from any sudden surge,” the minister said.
Asked whether India will be considered an obstructionist country because of such a stance, she said, “I didn’t get the feeling that in current phase of working towards Nairobi, India is seen as obstructionist. I am not asking for something new, so how can I be seen as obstructionist?”
While safeguards mechanism was not part of the Bali outcome, India has been pressing for it because it will give it the right to impose contingency restrictions on imports when import volumes rise above a certain level or prices fall below a certain level.
Q.1. According to the author, developed countries have been trying to:
1) gain mileage only in the areas of government procurement and environment.
2) solve problems related to climate change.
3) overtake the growth rate of developing countries.
4) alleviate the problems related to poverty.
5) focus more on investment, competition, labour, government procurement, environment, climate change.
Q.2. The author of the passage is most likely a/an
1) social scientist
2) biographer
3) essayist
4) reporter
5) economist
Q.3. What is true about India in the passage?
1) India has failed to impose contingency responses in terms of economic growth.
2) India is unwilling to make strict commitments on newer areas such as environment and labour.
3) India wants to be a superpower by 2020.
4) India wants to gain massive economic growth within the next ten years.
5) None of the above
Q.4. Why have the market borrowings been adjusted down by Rs. 15,000 crore?
1) To get an estimate of the government borrowings through the Sovereign Gold Bond and Gold Monetisation Scheme.
2) To ensure that India can repay the loan debts accumulated so far.
3) To attain a level playing ground among other nations.
4) To maximize the profit of foreign exchange.
5) None of the above
Q.5. Why did the market witness a drastic correction towards the middle of August 2015?
1) There was a slump in agricultural production.
2) There was a downfall in industrial production.
3) The Chinese Yuan devalued.
4) There was panic in the global market about an impending disaster in the global economy.
5) All of the above
Q.6. What is the tone of the author in the passage?
1) Incisive
2) Discursive
3) Narrative
4) Verbose
5) Digressive
Q.7. Choose the word/group of words which is most similar in meaning to the word/group of words given in bold.
Contingency
1) Plan
2) Method
3) Strategy
4) Chance
5) Deficit
Q.8. Choose the word/group of words which is most similar in meaning to the word/group of words given in bold.
Procurement
1) Accretion
2) Adaptation
3) Adoption
4) Brand
5) Absorption
Q.9. Choose the word/group of words which is most opposite in meaning to the word/group of words given in bold.
Provisionally
1) Interim
2) Ephemeral
3) Conditional
4) Permanent
5) Temporary
Q.10. Choose the word/group of words which is most opposite in meaning to the word/group of words given in bold.
Mandate
1) Acceptance
2) Denial
3) Instruction
4) Attention
5) Direction
Answers With Explanations:-
Q.1. 5; Refer to the sentence beginning with “Developed countries have been trying to insert new issues…” for the answer.
Q.2. 5; The author of the passage is most likely an economist. Since the entire passage is about economic growth and development, the author of the passage is most likely an economist.
Q.3. 2; Refer to the sentence beginning with “India is not willing to make binding commitments on new areas ….”
Q.4. 1; Refer to the fifth paragraph for the answer where the author categorically mentions about the Gold Bond and Gold Monetisation Scheme.
Q.5. 3; Refer to the sixth paragraph for the answer.
Q.6. 1; The tone of the author is certainly incisive or analytical. The author furnishes a number of examples to substantiate his point.
Q.7. 4; An event (as an emergency) that may but is not certain to occur.
Q.8. 1; Accretion: an increase by natural growth or addition
Q.9. 4; Permanent: Lasting or intended to last or remain unchanged indefinitely. While, Ephermal: Something which lasts for a while.
Q.10. 2; Mandate: An official order or commission to do something.
