Reading comprehension I: inference, assumption, corollary and implication: previous-year questions

Private investment in general is volatile. Foreign private investment is more volatile because the available investment avenues are significantly greater (i.e., the entire world). Therefore, the responsibility of providing employment cannot be left to Foreign Direct Investment (FDI). The current FDI inflows are volatile over time and, across sectors and regions, which is a necessary consequence of their search for the highest returns. The adverse consequences are unstable employment and an accentuation of income and regional inequalities. A probable positive consequence of foreign investment is the inflow of new technology and its subsequent diffusion. However, the technology diffusion is not at all certain because the existing state of physical and human capital in India may prove inadequate for the diffusion.

India has tremendous potential for solar energy. We all realize that we have to stop burning fossil fuels to meet our energy needs. But certain renewable resources are still going through their cost curves and learning curves to get the required amount of output. The Indian Government has strongly committed to its targets of reducing emissions by 33 per cent by 2030, and towards this it has initiated a strong push towards a gas-based economy and has also invested heavily in renewable energy. However, business houses are wary of investing too heavily in renewable energy at a time when the technology is not yet ready.

Many opportunities to harness the highly skewed, seasonal and spatial distribution of monsoon flows, which occur in a four-month period from June to September annually, have been lost. Since these few months account for most of the rainfall and consequent freshwater availability, the need for holding rainwater in reservoirs, for subsequently releasing it for use over the year, is a necessity nobody can afford to overlook. Climate change will continue to affect weather conditions and create water shortages and excesses. While millions suffer from droughts and floods, waters in the country’s many rivers flow unutilized, and are discharged into the sea every year.

India has tremendous potential for solar energy. We all realize that we have to stop burning fossil fuels to meet our energy needs. But certain renewable resources are still going through their cost curves and learning curves to get the required amount of output. The Indian Government has strongly committed to its targets of reducing emissions by 33 per cent by 2030, and towards this it has initiated a strong push towards a gas-based economy and has also invested heavily in renewable energy. However, business houses are wary of investing too heavily in renewable energy at a time when the technology is not yet ready.

People will invest in education whenever they are granted the economic freedom to fully enjoy its benefits. Again, this is for the obvious reason that the return on education increases as the level of economic freedom rises. When people, thanks to lower tax rates, are allowed to retain most of the higher income that they gain from each incremental level of education, it makes eminent sense to invest in education. On the other hand, when the government decides to tax the higher income of educated individuals at even higher rates, it makes very little sense to invest in educating oneself further. The same incentives apply to parents who decide on whether to invest in their children’s education.

Genome editing is different from genome modification. Genome editing typically involves finding the part of a plant genome that could be changed to render it less vulnerable to disease, or resistant to certain herbicides, or to increase yields. Researchers use ‘molecular scissors’ to dissect the genome and repair it, which is a process that occurs naturally when plants are under attack from diseases and can throw up new mutations that enable the plant to survive future attacks. This evolutionary process can effectively be speeded up now that it is possible to examine plant genomes in detail in laboratories, and create mechanisms through which the relevant genes can be altered very precisely.

In India, agriculture still engages about half of its workforce, and about 85 per cent of its farms are small and marginal. Compared to China and Vietnam, which have experienced fast structural and rural transformation, India’s story is of slow transformation. As a result, poverty reduction in India was at a much slower pace during 1988–2014, compared to China and Vietnam. India’s poverty reduction was slow during 1988–2005, but during 2005–2012, it accelerated dramatically—almost three times faster than during the earlier period. What did India do during this period? Research reveals that the relative price scenario changed significantly (by more than 50%) in favour of agriculture in the wake of rising global prices. This boosted private investments in agriculture by more than 50%. As a result, agri-GDP growth touched 4·1% during 2007–2012 as against 2·4% during 2002–2007. The net surplus of agri-trade touched $25 billion in 2013–2014; real farm wages rose by 7% per annum. All this led to unprecedented fall in poverty.

In Part III of the Constitution, which assures people certain fundamental rights, Article 25 proclaims that “all persons are equally entitled to freedom of conscience and the right freely to profess, practise and propagate religion”. What people fail to notice is that this proclamation is prefixed with the words “subject to public order, morality, health and to the other provisions of this Part”, which set conditions precedent for the legal protection of religious practices of any community. The closing words of this prefatory rider in Article 25 virtually constitute a subordination clause placing other fundamental rights mentioned in Part III over and above the right to religious freedom. Among those other fundamental rights is the right to equality before law and equal protection of laws—assured at the outset and elaborated in later articles to mean, inter alia, that the State shall not deny equal protection of laws to any person or group of persons on the basis of religion alone.

In India, agriculture still engages about half of its workforce, and about 85 per cent of its farms are small and marginal. Compared to China and Vietnam, which have experienced fast structural and rural transformation, India’s story is of slow transformation. As a result, poverty reduction in India was at a much slower pace during 1988–2014, compared to China and Vietnam. India’s poverty reduction was slow during 1988–2005, but during 2005–2012, it accelerated dramatically—almost three times faster than during the earlier period. What did India do during this period? Research reveals that the relative price scenario changed significantly (by more than 50%) in favour of agriculture in the wake of rising global prices. This boosted private investments in agriculture by more than 50%. As a result, agri-GDP growth touched 4·1% during 2007–2012 as against 2·4% during 2002–2007. The net surplus of agri-trade touched $25 billion in 2013–2014; real farm wages rose by 7% per annum. All this led to unprecedented fall in poverty.

In India, over the last decade or so, labour has been departing agriculture, but is only going to construction and unregistered manufacturing which are not markedly better jobs. Services, where labour tends to be most productive, are not generating the additional jobs the country needs. India will need 24 million or so jobs over the next decade. The new sector, e-commerce, can at best close only half the jobs gap. Only those sectors that drive domestic demand such as health and education can comfortably fill the other half.

India is at once among the fastest growing global economies and home to the largest number of malnourished children in the world. There are regions where malnutrition is not the exception but the norm. And across the country, malnutrition is the cause of death for roughly half the 1·3 million children who die before their fifth birthday each year. Even those children who survive suffer permanently from the damage that has already been done to their bodies and minds from not getting enough of the right foods and nutrients. Around 44 million children under 5 are stunted. That makes it harder for them to learn in school and subsequently earn a living as adults. Their lifetime earnings potential is almost a quarter less than that of their healthy peers.

In India, the current focus on the right to privacy is based on some new realities of the digital age. A right is a substantive right only if it works in all situations, and for everyone. A right to free expression for an individual about her exploitation, for instance, is meaningless without actual availability of security that guarantees that private force cannot be used to thwart this right. The role of the State, therefore, is not just to abstain from preventing rightful free expression, but also to actively ensure that private parties are not able to block it.

The pulse variety ‘Pusa Arhar 16’ has the potential to be grown in the paddy-growing regions of Punjab, Haryana and Uttar Pradesh and eventually in all of India. Its yield (about 2000 kg/hectare) will be significantly greater than those of the existing varieties and because its size will be uniform, it will be amenable to mechanical harvesting, an attractive feature for farmers in northern India who currently use this technology for paddy. Most important, Arhar straw, unlike paddy straw, is green and can be ploughed back into the soil. In paddy straw, the problem is the high silica content, which does not allow for easy decomposition. In the case of Arhar, the farmer, even after combine harvesting, just needs to run a rotovator to cut the leftover straw into pieces, which can be ploughed back and will decompose very fast. All this is difficult with leftover paddy stalks that cannot be easily salvaged or ploughed back. Farmers, therefore, choose the easiest option of simply burning it.

One of the biggest ironies around water is that it comes from rivers and other wetlands. Yet it is seen as divorced from them. While water is used as a resource, public policy does not always grasp that it is a part of the natural ecosystem. Efforts at engineering water systems are thus efforts at augmenting water supply rather than strengthening the capacities of ecological systems.

In India, authorities always look to store the maximum amount of water in reservoirs during the monsoon season, which is then used for irrigation and generation of electricity during the summer months. It is an internationally accepted practice that the water level of a reservoir should be kept below a certain level before the onset of monsoon season. This is so that when monsoon rains come, there is space to store the excess rainwater and also so that water can be released in a regulated manner. But the authorities store the maximum amount of water in reservoirs even before the close of the monsoon, only to ensure greater electricity generation and irrigation.

Asset allocation is the most important investment decision we will ever make, and sadly, most of us do not give that decision the importance it deserves. We are adamant about seeking predictability with our future. We tend to think of investing in risky assets as extremely volatile and value eroding. We also dislike fluctuating returns and the loss of control of investment. We think our money is best left idle, unproductive but safe. There is no asset that is risk-free. We could lose our jobs, our homes can lose value, our banks can go bankrupt, our bonds can default, the government can collapse and companies we chose fondly may cease to exist. But we cannot live life assuming that all these extreme events are waiting to happen, and all at the same time. All these extreme forms of risks we know will not manifest at the same time.

Economic liberalization in India was shaped largely by the economic problems of the government than by the economic priorities of the people or by the long-term development objectives. Thus, there were limitations in conception and design which have been subsequently validated by experience. Jobless growth, persistent poverty and rising inequality have mounted as problems since economic liberalization began. And all these years later, four quiet crises confront the economy; agriculture, infrastructure, industrialization and education as constraints on the country’s future prospects. These problems must be resolved if economic growth has to be sustained and transformed into meaningful development.

Although most of the Genetically Modified (GM) crops cultivated now are genetically engineered for a single trait, in future, crops genetically engineered for more than one trait will be the norm. Thus, biotechnology’s role in agriculture and the regulation of the same cannot be understood solely in the context of the current generation of GM crops. Instead, there is a need to take a comprehensive look, taking into account various aspects, including socio-economic impacts, so that the potential of the technology can be harnessed while minimizing negative impacts. Given the importance of biotechnology in developing varieties that can help in climate change mitigation and adaptation, not using biotechnology as a part of the climate change action plan cannot be an option. Domestic regulation of biotechnology cannot be viewed in isolation of trade policy and obligations under various international treaties and conventions.

Economic liberalization in India was shaped largely by the economic problems of the government than by the economic priorities of the people or by the long-term development objectives. Thus, there were limitations in conception and design which have been subsequently validated by experience. Jobless growth, persistent poverty and rising inequality have mounted as problems since economic liberalization began. And all these years later, four quiet crises confront the economy; agriculture, infrastructure, industrialization and education as constraints on the country’s future prospects. These problems must be resolved if economic growth has to be sustained and transformed into meaningful development.

Although most of the Genetically Modified (GM) crops cultivated now are genetically engineered for a single trait, in future, crops genetically engineered for more than one trait will be the norm. Thus, biotechnology’s role in agriculture and the regulation of the same cannot be understood solely in the context of the current generation of GM crops. Instead, there is a need to take a comprehensive look, taking into account various aspects, including socio-economic impacts, so that the potential of the technology can be harnessed while minimizing negative impacts. Given the importance of biotechnology in developing varieties that can help in climate change mitigation and adaptation, not using biotechnology as a part of the climate change action plan cannot be an option. Domestic regulation of biotechnology cannot be viewed in isolation of trade policy and obligations under various international treaties and conventions.