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GATE 2021 XH2 – Question 25

Reasoning and Comprehension · Analytical and Logical Reasoning: Understanding relationships in statements or short passages and drawing reasonable conclusions and inferences; thinking critically to evaluate or predict an argument, identify the main and supporting arguments and predict outcomes · 2 marks · Multiple select

A Mint opinion piece argues that, despite the recent success of carmakers P and Q, protected Indian vehicle production remains inefficient, small-scale and weak in research, innovation and productivity. High tariffs encourage foreign firms to manufacture locally (“tariff jumping”) without ensuring global competitiveness. The largely deregulated auto-parts sector, with tariffs as low as12.5%, has better productivity and export performance. Which inferences represent the passage’s argument?

  1. Low tariff barriers increase productivity.
  2. Tariff jumping increases productivity.
  3. Deregulation’s success in parts supports applying it to complete vehicles.
  4. P and Q invest insufficiently in research and development.

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Show answer and explanation

Correct answer: (A) Low tariff barriers increase productivity.; (C) Deregulation’s success in parts supports applying it to complete vehicles.; (D) P and Q invest insufficiently in research and development.

Explanation

The author contrasts low-tariff, deregulated parts with protected complete vehicles, supporting A and C within the argument. P and Q are included in the criticism of weak research, supporting D. B contradicts the stated inefficiency despite tariff-jumping investment. Select A,C,D. The comparison supports the opinion piece’s proposed explanation; by itself it is not a controlled proof of general economic causation.

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