In this statement and conclusion question about the Indian economy, two factual statements are given followed by two conclusions I and II. You must treat the statements as true and decide which conclusions logically follow from them. Statement I: The GDP of India continues to grow at one of the reasonable rates, but job creation is not increasing at a similar pace. Statement II: Every year, over 20 million young Indians join the workforce. Conclusion I: Population increase is more than the job creation rate. Conclusion II: The supply of jobs is limited, while the demand for jobs is very high.

Introduction / Context:
This question is based on interpretation of economic statements and drawing logical conclusions about employment. You are told that the gross domestic product of India is growing at a reasonable rate, but job creation is not keeping pace, and that more than 20 million young Indians enter the workforce every year. You must reason about population and job demand using these facts and decide which conclusions are justified.

Given Data / Assumptions:
- Statement I: India's GDP is growing reasonably, but new jobs are not being created at the same pace as overall economic growth.
- Statement II: Each year, more than 20 million young Indians join the workforce and start seeking jobs.
- Conclusion I: The increase in population, at least in terms of new job seekers, is more than the rate of job creation.
- Conclusion II: The job market has a smaller supply of jobs and a very large demand from job seekers.

Concept / Approach:
In statement and conclusion questions, we focus on what must logically follow, not on what might be true by outside knowledge. Here, we compare inflow of job seekers with the pace of job creation. If every year huge numbers of workers enter the job market, and the job creation rate is slower than that inflow, we can infer that demand for jobs exceeds the supply of jobs. We also interpret population increase, in the context of the question, as the increase in the number of people who are ready to work.

Step-by-Step Solution:
Step 1: From Statement I, we know that economic growth is reasonable but job creation lags behind. This implies that jobs are not being created fast enough compared to some relevant benchmark. Step 2: From Statement II, we know that every year more than 20 million young people join the workforce, which means that there is a very large and continuous inflow of job seekers. Step 3: Combine both statements. If a very large number of new workers appear each year and job creation is not growing at the same pace, the number of job seekers must grow faster than the number of available jobs. Step 4: Therefore, the population of job seekers, or the relevant part of population, increases faster than job creation. This supports Conclusion I. Step 5: The same reasoning shows that demand for jobs (job seekers) is very high, while the supply of jobs is relatively limited. This is exactly what Conclusion II states, so Conclusion II also follows.

Verification / Alternative check:
Imagine a simple model where every year 20 million new job seekers enter, but only, for example, 10 million new jobs are added. Over time, the backlog of job seekers will grow. The question does not specify exact numbers, but the phrase "not picking up the similar pace" implies job creation is slower than the growth of the workforce. This validates both conclusions as natural and necessary interpretations of the data provided.

Why Other Options Are Wrong:
Option A says only Conclusion II follows, but we have seen that Conclusion I is also supported because the increase in workforce outstrips job creation. Option C says neither conclusion follows, which ignores the clear mismatch between job inflow and job creation. Option D says only Conclusion I follows, but that would ignore the direct implication about demand and supply of jobs which is clearly captured by Conclusion II. Option E says they are only possible but not certain, but the wording of the statements makes the imbalance in job market quite explicit, so both conclusions do follow logically.

Common Pitfalls:
A typical mistake is to confuse economic growth rate with job growth rate. The question clearly separates them and states that job creation is slower. Another error is to think that population growth must refer to the entire population, including children and elderly, but within the context of employment, the relevant population is the working age group entering the workforce. Using this focused interpretation helps answer correctly.

Final Answer:
The correct option is Conclusion I and II both follow, because the statements together show that workforce growth exceeds job creation and that demand for jobs is much higher than the supply of jobs.