Statement — Even though the number of sugar factories is increasing rapidly in India, we still continue to import sugar from other countries. Assumptions — I. Even with more factories, domestic production may still not meet India’s current demand for sugar. II. 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.