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Direction: Read the passage carefully and answer the questions given below it. Certain words/ phrases have been given in bold to help you locate them while answering some of the questions.

In the age we live in, the process of securing a persistent rate of higher economic growth is considered to be the ultimate means of achieving prosperity for all. Economists and policy makers insouciantly use the word 'inclusive growth' penning down the objectives and rationale for every policy and reform measure.

It becomes pertinent thus to explore the underlying neo- liberalist idea of inclusive growth that fails to apply in evidence the developing-world context (specifically to India in South Asia).

The idea of inclusive growth has shaped our understanding of growth since the mid-1960s. The process achieving such growth encompasses an inclusion of all sections as beneficiaries and partners in growth, and envisages that an inclusion of the excluded should be embedded in the growth-process.

Such growth, as expected, by itself will then lead to a high elasticity of poverty reduction (higher reduction of poverty in per unit of growth), also reducing income inequalities at individual and group levels.

Simon Kuznets (1966) explained how inequalities do not last for long. According to Kuznets, 'Economic inequality increases over time while a country starts developing; however, after a certain average income is attained, inequality begins to decrease'.

The curve of inequality - the Kuznets curve - is inversely U-shaped, where inequalities tend to decline after a point because of two reasons: Firstly, with higher economic growth, the tax revenue of governments is likely to increase, enabling them to spend more on infrastructural development, education, healthcare and skill development; particularly in backward areas where the need of such social investment is felt more, in improving opportunities for people lacking the capital to grow.

And secondly, after the initial period of economic growth and boom, the stated expectation of neo-liberal advocates is that it will trickle down to people, by creating more jobs and incomes for many.

Jagdish Bhagwati cites the need of 'Track II' reforms in developing countries where he calls for the government to massively spend the economic benefits from liberalizing markets on healthcare, education, etc for the initial growth to trickle down and achieve the principles of equity and sustainability.

In her 2012 paper, Indira Hirway provides some useful empirical evidence from South Asia to debunk myths attached to 'inclusive' theoretical application ofneo-liberalist version of economic growth. Hirway explains how, in spite of the adoption of pro-market policies in most South Asian countries, the level of income inequalities continue to widen.

Out of the 14 Asian countries studied, inequality has increased in 11 -including Sri Lanka, China, Cambodia, India, Indonesia and Nepal. Malaysia and Thailand were the only two countries where inequalities decreased at the margin. In the case of India, the Gini coefficient (a measure of income inequality) rose from 0.44 to 0.47 during the last decade.

The issue with the Indian case has primarily been with the implementation of Track II reforms where, in spite of higher, sustained economic growth levels from early 2000s, public spending on education and healthcare has remained drastically low (less than 3 per cent and 2 per cent of the GDP, respectively, till now). This has resulted in the accumulation of economic wealth in limited geographical city centres where economic prosperity is enjoyed by the few who directly accrue the benefits, leaving 'the others' entirely dependent on the government. Upward income mobility within these lower income classes remains an issue due to the lack of adequate education, health standards and access to increasing productive job opportunities.

What is/are the finding of the research paper of Indira Hirway? Select your answer on the basis of the facts mentioned in the passage.

(A) That despite adoption of pro-market policies in most southern Asia countries, the income inequalities have increased.

(B) In the case of India, income inequality has risen during the last decade.

(C) Out of 14 Asian countries studied, only Thailand and Malaysia have registered marginal decrease in inequality.

A) Only (A) and (B)

B) Only (B) and (C)

C) Only (A) and (C)

D) All (A), (B) and (C)

E) Only (C)