Read the passage carefully and answer the questions given below the passage.

The World Bank on Thursday projected a 9.2% contraction for the Indian economy, steeper than the 3.2% estimated in June, highlighting the impact of pandemic-induced lockdown and the income shock experienced by households and small urban service firms.

"However, there is substantial uncertainty related to the course and duration of the pandemic; the speed at which households and firm behaviour will adjust to the lifting of lockdowns; and a possible new round of countercyclical fiscal policy," the World Bank said in its latest South Asia Economic Focus report.

While the government has signalled it is prepared to support the economy, there is no clarity about the timing or the extent of the next round of stimulus.

The Indian economy contracted a record 23.9% in the June quarter, underlining the extent of economic damage brought about by the pandemic and the ensuing lockdown. Many forecasters now expect Indian economy to contract in double digits in FY21.

The multi-lateral agency said the impact of the pandemic materialised in the backdrop of enduring fragility in the financial sector, slowing overall growth and limited fiscal buffers. "The response of the government of India to the covid-19 outbreak was swift and comprehensive. Nonetheless, there was a massive contraction in output and poor and vulnerable households experienced significant social hardship – specifically urban migrants and workers in the informal economy."

Growth is expected to rebound to 5.4% in FY22, according to the World Bank estimate, which assumes covid-related restrictions are completely lifted, but mostly reflecting base effects.

However, the Bank said, potential output is expected to remain depressed in the medium term and inflation is expected remain around the RBI’s target range mid-point of 4% in the near term.

The Bank said the covid-19 shock will lead to a long-lasting inflexion in India’s fiscal trajectory. "Assuming that the combined deficit of the states is contained within 4.5-5% of GDP, the general government fiscal deficit is projected to rise to above 12% in FY21 before improving gradually. Public debt is expected to remain elevated, around 94% (in FY23), due to the gradual pace of recovery."

While policy interventions have preserved the normal functioning of financial markets thus far, the Bank said, demand slowdown could lead to rising loan delinquencies and risk aversion.

Recent RBI analysis indicates that gross nonperforming loans to asset ratio of scheduled commercial banks may increase to 12.5% by March 2021 from 8.5% in March 2020.

1) Which of the following can not be the title of the passage?

a) World Bank sees sharper cut in India FY21 GDP,

b) World Bank Report: Sharp fall in India’s GDP

c) India Faces it steepest GDP contraction

d) Spread of corona virus running riot in India

e) None of these

2) Which of the following statements is not an idea of the passage?

a)The Indian economy contracted a record 23.9% in the June quarter, underlining the extent of economic damage brought about by the pandemic and the ensuing lockdown.

b) The Covid-19 pandemic has resulted in the worsening of India’s Economic condition

c) The covid-19 shock will lead to a long-lasting inflexion in India’s fiscal trajectory.

d) India is an investment destination that could serve as a manufacturing hub at the heart of global supply chains.

e) None of these

3) Which of the following statements is/are not true according to the passage?

a)Growth is expected to rebound to 5.4% in FY22, according to the World Bank estimate

b)The multi-lateral agency said the impact of the pandemic materialised in the backdrop of enduring fragility in the financial sector, slowing overall growth and limited fiscal buffers.

c)The World Bank on Tuesday projected a 9.29% contraction for the Indian economy, steeper than the 3.2% estimated in June

d) All are true

e) All are false

4) Find the option in which the pair of synonyms of the word “ensuing” is present.

a) Resulting: Scintillating

b) Following: Resulting

c) Ensuring: Confirming

d) Developing: Destroying

e) None of these

5) Find the option in which the pair of antonyms of the word “deficit” is present.

a) Sufficient: Slippage

b) Surplus: Lack

c) Scarcity: Abundance

d) Shortage: Paucity

e) Surplus: Profit

Answers :

1) Answer: D

The passage is about the GDP contraction that India is facing as a result of the Covid-19 pandemic, here we can see many pieces information from the report of World Bank.

Hence (a), (b) and (c) can be the title of the passage.

Only (d) cannot be the title of the passage.

2) Answer: D

As we can see, the passage is about the report of the World Bank on India’s GDP contraction, hence (a), (b), and (c) are the ideas that fit the context of the passage.

Only (d) is showing India as an investment destination, it is not mentioned in the passage, so, it is not an idea of the passage.

3) Answer: C

Focus on the following sentences from the passage:

“Growth is expected to rebound to 5.4% in FY22, according to the World Bank estimate, which assumes covid-related restrictions are completely lifted, but mostly reflecting base effects.”

“The multi-lateral agency said the impact of the pandemic materialised in the backdrop of enduring fragility in the financial sector, slowing overall growth and limited fiscal buffers.”

“The World Bank on Thursday projected a 9.2% contraction for the Indian economy, steeper than the 3.2% estimated in June, highlighting the impact of pandemic-induced lockdown and the income shock experienced by households and small urban service firms.”

Hence only (c) is not true.

4) Answer: B

Ensuing- occurring afterwards or as a result.

Hence “Following” and “Resulting” are the synonyms of the word.

5) Answer: E

Deficit- the amount by which something, especially a sum of money, is too small.

Hence, “Surplus” and “Profit” are the antonyms of the word.