Statement: “Even though the number of sugar factories is increasing rapidly in India, we still continue to import sugar from other countries.”\nAssumptions I & II:\nI. Even the increased number of factories may not meet India’s sugar demand.\nII. The demand for sugar may increase substantially in the future.\nChoose the option that correctly identifies the implicit assumption(s).

Introduction / Context:
The statement contrasts rising domestic capacity (more factories) with continued sugar imports. Inference questions like this ask what minimal belief must hold for the contrast to be sensible.

Given Data / Assumptions:

• I. Even after an increase in the number of factories, domestic supply is insufficient relative to current demand.
• II. Demand may grow substantially in the future.

Concept / Approach:
The observed fact of present imports, despite capacity growth, requires a present supply–demand gap. A conjecture about future demand is not necessary to explain current imports.

Step-by-Step Solution:
1) Observation: “We still import” implies domestic production shortfall relative to current demand, quality specifications, or timing.2) The most direct, necessary backdrop is I: increased factories still do not meet current demand (or needed quality/availability), hence imports continue.3) II is about future demand growth; imports now do not logically require that assumption.

Verification / Alternative check:
Even if future demand were stable or falling, present imports could persist due to shortages, seasonality, or cost/quality preferences. Hence II is unnecessary.

Why Other Options Are Wrong:
Only II: future conjecture does not justify current imports. Either/Both: include unnecessary premises. Neither: ignores the minimally required supply shortfall premise.

Common Pitfalls:
Assuming statements about present behavior rely on future projections; here the contrast is anchored in current mismatch.

Final Answer:
Only assumption I is implicit.