Read the passage given below and then answer the questions given below the passage. Last week, there was a story in Business Standard that HSBC has projected that India’s gross domestic product (GDP) would reach the size of about $5.9 trillion by 2030 rather than $10 trillion that N

Read the passage given below and then answer the questions given below the passage.

Last week, there was a story in Business Standard that HSBC has projected that India’s gross domestic product (GDP) would reach the size of about $5.9 trillion by 2030 rather than $10 trillion that Niti Aayog had projected for 2032. This implies an annual compounded growth rate in real GDP of 6.2%. Around the same time, this story appeared in print, there was also a report that the government of India had rejected the findings of the World Bank’s Human Capital Index launched just this month because, according to the government, it ignored many transformational initiatives that have undertaken to improve India’s human capital. The HCI had placed India at 115 out of 157 with some of its neighbouring countries doing better.

The government may be right that it is doing all the right things to make India’s children productive citizens in the future. But, the World Bank is probably onto something in throwing the spotlight on India’s low productive potential. India is a productivity-challenged nation because it is an attitude-challenged nation. When we think of productivity, we think about infrastructure and we think of a factory or assembly line in which thousands of workers are assembling parts and coming up with a finished product. This thing called infrastructure has two components. There is hard infrastructure. That is mostly about connectivity—transport and internet. That will be addressed sooner or later because the shortcomings are evident. Consequently, the issues cannot be covered up for too long. Someone has to take ownership and responsibility and fix the problem. It happens eventually but after much expenditure of effort— material and psychological. That is why it may be more important to focus on India’s soft infrastructure problem. That is the second component of infrastructure. It largely reflects our workplace attitudes.

Further, no matter how it is measured, India’s services sector dominates the economy. Productivity is hard to measure in this sector but attitudes are visible. They fall short. Long-term is most often traded for the short-term and there is far too much emphasis on form over substance. This leads to a controlled mindset that focuses on inputs than output or outcomes. To be clear, it is not just the problem of the governments or that of the public sector. It is an India problem.  

Which of the following are the two components of infrastructure?

1). Hard infrastructure and soft infrastructure
2). Transport and internet
3). Material and psychological
4). Expenditure and effort

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