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UPSC Prelims 2025 CSAT, question 61

Topic: Reading comprehension

Directions · Q61 to Q63

Directions for the following 3 (three) items :
Read the following two passages and answer the items that follow the passages. Your answers to these items should be based on the passages only.

Passage · Q61 to Q62

There has been no democracy that has grown economically without corporate capitalism. It helps in modernizing the economy and enabling the transition from rural to urban, and agriculture to industry and services, which are inevitable with growth. It generates jobs — and there is no other way to fix a country's unemployment challenge without a further impetus to private business. Big companies can operate on a large scale and become competitive both domestically and externally. A vibrant corporate capitalist base also leads to additional revenues for the State — which in turn, can be used for greater welfare for the marginalized and creating a more level playing field in terms of opportunities.

Q61

Which one of the following statements best reflects the critical message conveyed by the author of the passage ?

  1. (a) Corporate capitalism is important for economic growth of a State and also for democracy.Correct answer
  2. (b) Corporate capitalism is imperative for a modern State to achieve its political objectives.
  3. (c) No State can ensure its economic survival for long without the role of corporate capitalism.
  4. (d) Corporate capitalism and democracy have mutual dependence for their continued existence.

Solution.

Answer: (a) Corporate capitalism is important for economic growth of a State and also for democracy.

  1. The passage begins by stating that no democracy has grown economically without corporate capitalism and explains how it modernizes the economy, generates jobs, and provides state revenues for social welfare.
  2. Option (a) directly captures this dual importance of corporate capitalism for economic growth and democracy.