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 correct answer is B) 2 only. Options B and C are identical in the paper, so either letter maps to the same answer.

• Statement 1 is wrong. Indo-Sri Lanka trade under the ITFTA (2000) has grown overall, but it has not risen steadily every year. It has seen dips and recoveries across the decade, so the word "consistently" makes it false.
• Statement 2 is correct. Textiles and textile articles, such as cotton yarn, fabrics and garments, are among India's major exports to Bangladesh. This is the kind of item-wise trade fact that appears repeatedly in Prelims.
• Statement 3 is wrong. In recent years Bangladesh, not Nepal, has been India's largest trading partner in South Asia. Nepal's trade with India is far smaller in value terms.

The core concept here is India's bilateral trade profile with its neighbours, which links to the Neighbourhood First policy and to Mains questions on regional connectivity and trade balance.

Trap: Aspirants often pick Nepal because of the open border and deep cultural ties, or they assume trade rises every year without checking the data.