Read the passage given below and then answer the questions given below the passage. Some words may be highlighted for your attention. Read carefully.

The Indian economy is diverse and embraces a huge area including agriculture, mining, textile industry, manufacturing and an extensive area of other services. There is an enormous shift from what the economy used to be in the distant past. Indian economy is the third-largest in the world, as measured by ‘Purchasing Power Parity’ (PPP). Till today, two-thirds of the population depends on agriculture directly or indirectly. Indian economy is somewhat socialistic in its approach but presently India is competing with other capitalist countries. Colonial rule brought along with it change in the economic structure of the country. The whole process of taxation was revised, with effect on the farmers, a single currency system with fixed exchange rates, standardized weights, and measures, free trade was encouraged and a kind of capitalist structure in the economy introduced. They exported the raw materials and manpower and the finished goods were brought back to India and sold at high rates. These policies were not favourable to Indian Economy. But other developments in transport and communication like the introduction of railways, telegraphs and so on were made which affected the economy. The basic aim of British administration in India was to transform the Indian subcontinent as a consumer market for British finished goods. Technological up-gradation and development of infrastructure, as well as social infrastructure, were negligible. During the independence Indian economy had almost all the features of an underdeveloped economy. In the last fifty years of self-rule, a lot of policy initiative has been taken up by the government of India to upgrade the economic base of the country. Still, the Indian economy is gripped by poverty, population explosion, backwardness both in agriculture and industry, low-grade technological development, high unemployment and wide difference between the high and low-income levels. Now in India incidence of poverty is coexisting with sophisticated nuclear technology.