CLAT Sample Paper UG-CLAT Mock Test-8 (2020)

  • question_answer
    Direction: Study the following passage carefully and answer the questions given below:
    Since India’'s adoption of liberalization policy in 1991, multiple opportunities for investment have attracted various foreign investors. The government ensured that projects were approved quickly and moreover 34 industrial sectors were allowed automatic approval of projects. The investment was focused on the industrial sector and thus, has majorly contributed towards manufacturing sector growth. There was also relaxation in the percentage of ownership to be held by foreign actors. This led to various industrial project initiations in the sectors like automobiles, infrastructure, computer software’'s etc. Hence, India’s FDI is approximately 25 times more than what it was before adoption of liberation policy.
    What are the core components of India’s Liberalization Policy adopted in 1991 that led to various industrial project initiations?

    A) Quick approval of the projects

    B) Relaxation in the percentage of ownership

    C) Project initiations in the sectors like automobiles and infrastructure

    D) Both a and b

    Correct Answer: D

    Solution :

    (d)
    1. Analogical reasoning
    2. Inference
    3   Objective and classification analogy
    Quick approval of the projects and relaxation in the percentage of ownership allowed considerable number of foreign investors to India. Project initiations in the sectors like automobile's and infrastructure is a result out of the earlier mentioned two steps.


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