Q1-10: Read the following passage carefully and answer the questions given below it. Certain words have been highlighted for your attention.
The economy is the system of goods and money used by a given society. Growth means getting bigger. Development means becoming more advanced or complex. Economic growth and development can mean an economy that becomes advanced, larger, diverse, profitable, and expand into new regions/horizons. When the Britishers left, our country was economically backward. The self-sufficient village economy based on cottage industries and old handicraft items were losing demand because of the introduction of industrial products. The Government of India has undertaken several initiatives aiming at economic growth and development. For the industrial and technological development of the country, the Constitution provides for setting up of a Planning Commission to frame plans and programs for the rapid economic development of the country. Community development Projects and National Extension Services were launched for the same reason.
A chain of scientific laboratories, agricultural Research Institutions, Technical Institutions, and a gigantic public sector of the economy was created. Means of transport and communication system such as railways, airways and waterways have developed. During the last few decades, India has made good economic progress in the field of Information Technology, Infrastructure, Agriculture, and other sectors. At present, India is considered a major developing country with an average GDP growth rate of around 7 percent. In terms of nominal GDP, India is ranked seventh in the world. During the last quarter of the year 2014, India surprised the world by becoming the world’s fastest growing major economy. But, in spite of all this progress, it cannot be said that the problem of national integration, social issues, poverty, inflation, income disparity, etc. has been solved. Industrialization is confined to few states and cities, and a bulk of rural areas unaffected by industrialization.
The extremes of poverty are a hindrance in the process of national integration. Without a balanced economic growth and development, national unity cannot be achieved. Inflation is another factor that has affected the economic growth of our country. Inflation happens when the currency becomes less able to purchase goods due to rising prices. High inflation is usually bad for an economy, however, low or moderate level of inflation is often considered healthy for economic development. Economic growth and development are essential for the best utilization of resources, economic welfare, and sustainability. Economic growth ought to improve citizens’ living standards. Bigger economies grow in a sustainable way and have more global influence.