Statement — Even though the number of sugar factories is increasing rapidly in India, we still continue to import sugar from other countries.\n\nAssumptions —\nI. Even with more factories, domestic production may still not meet India’s current demand for sugar.\nII. The demand for sugar will increase substantially in the future.

Introduction / Context:
The statement contrasts an increase in the number of domestic factories with the continued reliance on imports. The most economical explanation is a present shortfall: capacity/production still lags demand. The statement does not require any claim about future demand growth; it compares current production capacity against current needs.

Given Data / Assumptions:

• Fact: number of sugar factories is rising.
• Fact: sugar imports still occur.
• I: present output remains insufficient to satisfy current demand.
• II: future demand will rise substantially.

Concept / Approach:
“Still import” is a present tense outcome. That requires a current production–demand gap (I). Projecting future increases (II) is not necessary to justify the present import behavior and is therefore not implicit.

Step-by-Step Solution:

Verification / Alternative check:
Even if future demand were flat, a current deficit would still require imports—confirming I without II.

Why Other Options Are Wrong:

Common Pitfalls:
Confusing present necessity (imports now) with speculative future growth.

Final Answer:
Only Assumption I is implicit.