Reading Comprehension – Test 113

Read the following passage carefully and choose the most appropriate answer to the questions out of five alternatives. <br><br> The high-frequency data coming out over the last few months point to a demand slowdown in the economy. Commercial vehicle off-take has been in the negative territory for the last few months following a drop in freight volumes and also tariffs. Passenger car sales, that were weak through 2018-19 with growth of just 2.7%, actually fell by 17% in April, which is the sharpest drop in eight years. Two-wheeler sales fell by 17% in 2018-19. Consumer durable and fast-moving consumer goods sales have been tepid too. Even domestic air traffic growth fell for the first time in six years in April. These trends are validated by the monthly factory output data - after a flat, no-growth February, output contracted by 0.1% in March. In an economy such as India's excessively dependent on domestic consumption, a fall in consumer spending spells trouble.<br><br> In its first term, the Modi government did an admirable job in pushing public investment to prop up growth; the new government should, in addition, push consumption spending. And the best way to do that is to put more money in the hands of the people by cutting income tax sharply. It requires guts and gumption to do this though, considering the overall commitment to maintain fiscal discipline. <br><br> Yet, this may be the much-needed fillip to consumption as it is the middle class which will go out and spend the extra money in its hands. This may also be shrewd politics as the middle class has backed the BJP in this election. In fact, this argument can be extended by suggesting a cut in corporate taxes as well to unleash the animal spirits in the economy. Remember P. Chidambaram's "dream budget" of 1997 when he cut personal and corporate tax rates sharply and how it spurred growth? <br><br> In this respect, the outgoing government - much against its philosphical leanings - has behaved more like the previous United Progressive Alliance governments by sticking to high tax rates and refusing to cut them. Maybe it was scalded by the "suit-boot-ki-sarkar" jibe of the Congress but the stage is now nicely set for the new government to try an alternative economic approach more aligned to the BJP's economic philosophy.

Which of the following is incorrect?

Read the following passage carefully and choose the most appropriate answer to the questions out of five alternatives. <br><br> The high-frequency data coming out over the last few months point to a demand slowdown in the economy. Commercial vehicle off-take has been in the negative territory for the last few months following a drop in freight volumes and also tariffs. Passenger car sales, that were weak through 2018-19 with growth of just 2.7%, actually fell by 17% in April, which is the sharpest drop in eight years. Two-wheeler sales fell by 17% in 2018-19. Consumer durable and fast-moving consumer goods sales have been tepid too. Even domestic air traffic growth fell for the first time in six years in April. These trends are validated by the monthly factory output data - after a flat, no-growth February, output contracted by 0.1% in March. In an economy such as India's excessively dependent on domestic consumption, a fall in consumer spending spells trouble.<br><br> In its first term, the Modi government did an admirable job in pushing public investment to prop up growth; the new government should, in addition, push consumption spending. And the best way to do that is to put more money in the hands of the people by cutting income tax sharply. It requires guts and gumption to do this though, considering the overall commitment to maintain fiscal discipline. <br><br> Yet, this may be the much-needed fillip to consumption as it is the middle class which will go out and spend the extra money in its hands. This may also be shrewd politics as the middle class has backed the BJP in this election. In fact, this argument can be extended by suggesting a cut in corporate taxes as well to unleash the animal spirits in the economy. Remember P. Chidambaram's "dream budget" of 1997 when he cut personal and corporate tax rates sharply and how it spurred growth? <br><br> In this respect, the outgoing government - much against its philosphical leanings - has behaved more like the previous United Progressive Alliance governments by sticking to high tax rates and refusing to cut them. Maybe it was scalded by the "suit-boot-ki-sarkar" jibe of the Congress but the stage is now nicely set for the new government to try an alternative economic approach more aligned to the BJP's economic philosophy.

India's economy is extremely dependent upon-

Read the following passage carefully and choose the most appropriate answer to the questions out of five alternatives. <br><br> The high-frequency data coming out over the last few months point to a demand slowdown in the economy. Commercial vehicle off-take has been in the negative territory for the last few months following a drop in freight volumes and also tariffs. Passenger car sales, that were weak through 2018-19 with growth of just 2.7%, actually fell by 17% in April, which is the sharpest drop in eight years. Two-wheeler sales fell by 17% in 2018-19. Consumer durable and fast-moving consumer goods sales have been tepid too. Even domestic air traffic growth fell for the first time in six years in April. These trends are validated by the monthly factory output data - after a flat, no-growth February, output contracted by 0.1% in March. In an economy such as India's excessively dependent on domestic consumption, a fall in consumer spending spells trouble.<br><br> In its first term, the Modi government did an admirable job in pushing public investment to prop up growth; the new government should, in addition, push consumption spending. And the best way to do that is to put more money in the hands of the people by cutting income tax sharply. It requires guts and gumption to do this though, considering the overall commitment to maintain fiscal discipline. <br><br> Yet, this may be the much-needed fillip to consumption as it is the middle class which will go out and spend the extra money in its hands. This may also be shrewd politics as the middle class has backed the BJP in this election. In fact, this argument can be extended by suggesting a cut in corporate taxes as well to unleash the animal spirits in the economy. Remember P. Chidambaram's "dream budget" of 1997 when he cut personal and corporate tax rates sharply and how it spurred growth? <br><br> In this respect, the outgoing government - much against its philosphical leanings - has behaved more like the previous United Progressive Alliance governments by sticking to high tax rates and refusing to cut them. Maybe it was scalded by the "suit-boot-ki-sarkar" jibe of the Congress but the stage is now nicely set for the new government to try an alternative economic approach more aligned to the BJP's economic philosophy.

What action does the writer suggest to push consumption spending?