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?
The value of Indo-Sri Lanka trade has no consistent trend in the last decade. Hence Statement 1 is incorrect There are significant value chain linkages between India and Bangladesh, particularly in the textile and apparel sector. India specializes in the upstream segment, supplying such intermediate inputs as silk, cotton, yarn, and fabrics to Bangladesh. Bangladesh specializes in the downstream final apparel segment, exporting worldwide as well as to India. Hence Statement 2 is correct. Bangladesh is India’s biggest trade partner in South Asia. Hence Statement 3 is incorrect. Therefore, the correct answer is (b).