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Given below are two statements:Statement I: Crude petroleum and iron…

Given below are two statements:

Statement I: Crude petroleum and iron ore are natural products included in component materials under materials and parts.

Statement II: Cotton, sugar cane and oil seed are farm products included in raw material under materials and parts.

In the light of the above statements, choose the correct answer from the options given below:

Answer & explanation

Correct answer: option 4

The correct answer is Option (4) → Statement I is incorrect but Statement II is correct.

Statement I: Crude petroleum and iron ore are natural products included in component materials under materials and parts. — Incorrect. Crude petroleum and iron ore are natural products, and they come under raw material. Component materials are manufactured materials, such as glass, iron and plastic.

Statement II: Cotton, sugar cane and oil seed are farm products included in raw material under materials and parts. — Correct. Raw material includes farm products such as cotton, sugar cane and oil seed. Raw material is a part of materials and parts, the goods that enter the maker’s product completely.

NCERT (2026-27 Edition): “Classification The industrial goods are classified into the following major categories:
(i) Materials and Parts: These include goods that enter the manufacture’s products completely. Such goods are of two types:
(a) raw material: including farm products like cotton, sugar cane, oil seed and natural products such as minerals (say crude petroleum, iron ore), fish and lumber; and
(b) manufactured material and parts. These are again of two types – component materials like glass, iron, plastic and component parts such as tyre, electric bulb, steering, and battery.”