Consider the following statements regarding India's trade deficit in early 2025:
Statement I: In the early part of 2025, India recorded its smallest trade deficit in over three years.
Statement II: The recent decline in trade deficit was driven by rising exports and a decline in imports.
Which one of the following is correct in respect of the above statements?
1
Both Statement I and Statement II are correct, and Statement II is the correct explanation for Statement I.
2
Both Statement I and Statement II are correct, but Statement II is not the correct explanation for Statement I.
3
Statement I is correct, but Statement II is incorrect.
4
Statement I is incorrect, but Statement II is correct.