Consider the following statements:
1. The value of Indo-Sri Lanka trade has consistently increased in the last decade.
2. “Textile and textile articles” constitute an important item of trade between India and Bangladesh.
3. In the last five years, Nepal has been the largest trading partner of India in South Asia.
Which of the statements given above is/are correct?
Explanation
Statement 1 is incorrect: Bilateral trade between India and Sri Lanka has fluctuated significantly over the last decade due to tariff barriers, macroeconomic headwinds, and currency volatility, showing periodic dips rather than consistent year-on-year increases.
Statement 2 is correct: Textiles and ready-made garments represent a cornerstone of Indo-Bangladesh commerce. India exports cotton yarn and fabrics to Bangladesh’s garment industry, while readymade garments and jute manufactures form the largest single category of Indian imports from Bangladesh.
Statement 3 is incorrect: Within the SAARC region, Bangladesh has consistently remained India’s largest trading partner in South Asia, followed by Nepal and Sri Lanka.
Therefore, only statement 2 is correct — Option B.