Consider the following statements regarding the current economic indicators in India:
Statement I: There are signs of strain in certain sectors of the Indian economy, including automobiles and fast-moving consumer goods sales in urban areas.
Statement II: The Ministry of Finance has indicated that the low level of public spending, particularly the decline in capital spending by states, is a major concern for economic growth.
Which of the following is correct with respect to the above statements?
1
Both Statement I and Statement II are correct, and Statement II explains Statement I.
2
Both Statement I and Statement II are correct, but Statement II does not explain Statement I.
3
Statement I is correct, but Statement II is incorrect.
4
Statement I is incorrect, but Statement II is correct.