Directions (1-5): Read the following passage carefully and answer the questions given below it. Certain words are given in bold to help you locate them while answering some of the questions.
There is a sense of gloom pervading India’s $150-billion information technology (IT) industry, which earned India $88 billion in foreign exchange in 2015-16 through the exports of software and IT-enabled services (ITeS). According to data from the Reserve Bank of India (RBI), the rate of growth of the combined exports of software and ITeS fell from 20.8 per cent in 2012-13 to 14.9 per cent in 2014-15 and to a low of 7.3 per cent in 2015-16. Global circumstances combined with the specific nature of India’s IT prowess seem to be responsible for this fall. India’s IT industry recorded remarkable growth over a long period because it exploited an outsourcing opportunity by perfecting a global delivery model for software and ITeS based on cheap skilled labour. That opportunity was offered by the cost-cutting imperatives facing the corporate sector in the United States and elsewhere.
As a result, IT industry revenues grew in double digits, with export earnings accounting for a large share of those revenues. Employment grew rapidly, albeit from a low base and at a lower pace than revenues. And a service industry to support the IT sector’s growth grew around the principal centres of its activity, suggesting that despite the absence of physical production the sector had backward linkages through which it delivered some economy-wide benefits. This combination of the characteristics of India’s IT success not only gave the industry a position of privilege in the economy but made it the symbol of India’s ostensible post-globalisation success.
However, there were a number of features of that model that made it vulnerable to changes in circumstances. To start with, it had a high degree of dependence on exports for growth, with the U.S. accounting for a very large share of those exports, followed by the European Union (E.U.) at a distant second. At the turn of the century, the U.S. market accounted for close to two-thirds of India’s IT exports and the E.U. for about a quarter, and even in 2015-16, the U.S. was first with 62 per cent and Europe second with 24 per cent. Little had changed for the industry.
Secondly, software services (or code writing and customisation of different levels of sophistication) and ITeS, rather than IT products, accounted for an overwhelming share of revenues. To garner those revenues, a workforce with essential IT skills and familiarity with English, communication infrastructure, and the requisite organisation were the necessary ingredients. But sustaining those revenues required constant attention to cost competitiveness, which encouraged automation of the routine activities that constitute an important part of the industry’s operations.
Thirdly, this output composition required combining offshore delivery with local services provision to understand client requirements and customize services and even run operations. So, on-site work remained an important component of the industry’s activity. In 2002-03, 48 per cent of India’s exports of IT services was through the medium of a commercial presence on foreign soil and another 13.5 per cent through the presence of natural persons. By 2015-16 those figures had come down to 18.9 per cent and 16.1 per cent respectively. But the local presence, which ensured provision of 35 per cent of the value services that had risen in value from Rs.31,100 crore to Rs.5,76,310 crore between 2002-03 and 2015-16, was undoubtedly large and crucial to the industry’s performance.
Finally, a few firms (such as Tata Consultancy Services (TCS), Infosys and Wipro) account for a very large share of the industry’s revenues, drawing attention to their operations and brand as happened in the U.S. recently.
Q1. Why according to the passage India’s IT industry is facing a sense of despondency?
(I)Because of unavailability of cheap skilled labour force in the country.
(II)There is an abrupt decline in the rate of growth of the combined exports of software and ITeS.
(III)Because of over-exploitation of outsourcing opportunities.
(a)Only (I) is correct
(b)Only (II) is correct
(c)Both (I) and (III) are correct
(d)Both (II) and (III) are correct
(e)All are correct
Q2. How the outsourcing opportunity helped India’s IT industry in achieving exceptional growth?
(I)It bettered India’s global delivery model for software and ITeS based on cheap skilled labour.
(II)There was a significant growth in generation of revenues of IT industry.
(III) It helped in rapid growth of employment.
(a)Only (I) is correct
(b)Only (III) is correct
(c)Both (I) and (II) are correct
(d)Both (II) and (III) are correct
(e)All are correct
Q3. What does the author mean by the sentence, “Little had changed for the industry” as used in the passage?
(a)Despite the subsequent growth in other sectors, Indian IT industry failed to add value to the economy.
(b)IT Industry still had a high degree of dependence on exports for growth.
(c) Software services and ITeS were responsible for overwhelming share of revenues, rather than IT products.
(d)Both (b) and (c)
(e)All of the above
Q4. Which of the following statements is/are true in context of the passage?
(I) In 2002-03, 18.9 per cent of India’s exports of IT services was through the medium of a commercial presence on foreign soil and another 16.1 per cent through the presence of natural persons.
(II) India’s IT success not only gave the industry a position of privilege in the economy but made it the symbol of India’s ostensible post-globalisation success.
(III) A workforce with essential IT skills and familiarity with English, communication infrastructure, and the requisite organisation were the necessary ingredients for drawing attention of the outsourcing opportunity.
(a)Only (I) is true
(b)Only (II) is true
(c)Both (I) and (II) are true
(d)Both (II) and (III) are true
(e)All are true
Q5. Why according to the passage the growth rate of combined exports of software and ITeS slumped to a new low?
(a) Global circumstances combined with the specific nature of India’s IT prowess seem to be responsible for this fall.
(b) India’s over dependence on the exports of software and ITeS for growth.
(c) Due to absence of physical production.
(d) Lack of workforce with essential IT skills and familiarity with English, and communication infrastructure.
(e) All of the above.
Directions (6-8): Choose the word/group of words which is most similar in meaning to the word/group of words printed in bold as used in passage.
Q6. Prowess
(a)Dexterity
(b)Method
(c)Composure
(d)Liberty
(e)Serenity
Q7. Garner
(a)Pick up
(b)Setup
(c)Preserve
(d)Buy up
(e)Amass
Q8. Imperative
(a)Subtle
(b)Piercing
(c)Vital
(d)Supple
(e)Mercurial
Directions (9-10): Choose the word/group of words which is most opposite in meaning to the word/group of words printed in bold as used in passage.
Q9. Ostensible
(a)Avowed
(b)Genuine
(c)Alleged
(d)Illusory
(e)Feigned
Q10. Customize
(a)Sustenance
(b)Broaden
(c)Maintenance
(d)Reshape
(e)Comply
Solutions
S1. Ans. (b)
Sol. Refer the first paragraph, “According to data from the Reserve Bank of India (RBI), the rate of growth of the combined exports of software and ITeS fell from 20.8 per cent in 2012-13 to 14.9 per cent in 2014-15 and to a low of 7.3 per cent in 2015-16.” Hence only statement (II) is the correct reason.
S2. Ans. (e)
Sol. Refer the last few lines of first paragraph, “India’s IT industry recorded remarkable growth over a long period because it exploited an outsourcing opportunity by perfecting a global delivery model for software and ITeS based on cheap skilled labour.” and the first few lines of second paragraph, “As a result, IT industry revenues grew in double digits, with export earnings accounting for a large share of those revenues. Employment grew rapidly, albeit from a low base and at a lower pace than revenues.” Hence all three statements are correct in context of the passage.
S3. Ans. (d)
Sol. Refer the first few sentences of the third paragraph, “However, there were a number of features of that model that made it vulnerable to changes in circumstances. To start with, it had a high degree of dependence on exports for growth, with the U.S. accounting for a very large share of those exports…” and the first sentence of the fourth paragraph, “Secondly, software services (or code writing and customisation of different levels of sophistication) and ITeS, rather than IT products, accounted for an overwhelming share of revenues.” Hence both the statements (b) and (c) are correct in context of the passage.
S4. Ans. (b)
Sol. Refer the statements, “In 2002-03, 48 per cent of India’s exports of IT services was through the medium of a commercial presence on foreign soil and another 13.5 per cent through the presence of natural persons.”, “This combination of the characteristics of India’s IT success not only gave the industry a position of privilege in the economy but made it the symbol of India’s ostensible post-globalisation success.” and “To garner those revenues, a workforce with essential IT skills and familiarity with English, communication infrastructure, and the requisite organisation were the necessary ingredients.” Hence only statement (II) is true in context of the passage.
S5. Ans. (a)
Sol. Refer the first paragraph, “According to data from the Reserve Bank of India (RBI), the rate of growth of the combined exports of software and ITeS fell from 20.8 per cent in 2012-13 to 14.9 per cent in 2014-15 and to a low of 7.3 per cent in 2015-16. Global circumstances combined with the specific nature of India’s IT prowess seem to be responsible for this fall.” Hence (a) is the correct option in context of the passage.
S6. Ans. (a)
Sol. Prowess means skill or expertise in a particular activity or field. Dexterity means skill in performing tasks, especially with the hands. Hence both are similar in meanings.
Serenity means the state of being calm, peaceful, and untroubled.
S7. Ans. (e)
Sol. Garner means gather or collect (something, especially information or approval). Hence “amass” is the word most similar in meaning to it.
S8. Ans. (c)
Sol. Imperative means a factor or influence making something necessary. Hence ‘vital’ is the word most similar in meaning to it.
Supple means bending and moving easily and gracefully; flexible.
Mercurial means subject to sudden or unpredictable changes of mood or mind.
S9. Ans. (b)
Sol. Ostensible means stated or appearing to be true, but not necessarily so. Hence ‘genuine’ is the word most opposite in meaning to it.
Avowed means that has been asserted, admitted, or stated publicly.
S10. Ans. (b)
Sol. Customize means modify (something) to suit a particular individual or task. Hence ‘broaden’ is the word most opposite in meaning to it.
Sustenance means the maintaining of someone or something in life or existence.
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