Official Answer Key & Detailed Solution
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Correct Answer: Option (B) — 2 only
Concept & Option Breakdown
Standard Reference VerifiedStatement 1 is incorrect: Bilateral trade between India and Sri Lanka has fluctuated over the last decade due to economic cycles and crises, rather than growing consistently each year.
Statement 2 is correct: Textiles, yarn, fabrics, and ready-made garments constitute a major component of bilateral trade between India and Bangladesh.
Statement 3 is incorrect: Bangladesh, not Nepal, is India’s largest trading partner in South Asia.
'Consistently increased' over a decade is almost always an extreme, incorrect trend statement in trade questions. Bangladesh is by far India's largest trading partner in SAARC.
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