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 option is 2 only.

Let us analyze each statement to understand why this option is correct:

Analysis of Statement 1:
Statement 1 suggests that the value of Indo-Sri Lanka trade has consistently increased in the last decade. Historically, bilateral trade between India and Sri Lanka has fluctuated due to various economic factors, domestic policies, and global economic conditions, rather than showing a continuous, year-on-year increase. Any statement claiming a "consistent increase" over a decade in international trade is usually incorrect because trade values tend to rise and fall in response to economic cycles.

Analysis of Statement 2:
Statement 2 states that “Textile and textile articles” constitute an important item of trade between India and Bangladesh. This statement is correct. Bangladesh is one of the world's largest exporters of garments and textiles, and India is a major supplier of raw cotton, yarn, and fabric to Bangladesh. Additionally, India imports ready-made garments from Bangladesh, making textiles a major and highly significant component of their bilateral trade profile.

Analysis of Statement 3:
Statement 3 claims that in the last five years, Nepal has been the largest trading partner of India in South Asia. This statement is incorrect. Bangladesh has consistently been India's largest trading partner in South Asia, followed by other countries like Nepal and Sri Lanka. Therefore, Nepal is not the largest trading partner in the region.

Since only Statement 2 is correct, the correct option is "2 only".