Consider the following statements: 1. The value of Indo-Sri Lanka trade has consistently increased in the last decade. 2. "Textile and textile articles" constitute an important item of trade between India and Bangladesh. 3. In the last five years, Nepal has been the largest trading partner of India in South Asia. Which of the statements given above is/are correct?

Let's analyze each statement regarding India's international trade with its neighbours:

1. The value of Indo-Sri Lanka trade has consistently increased in the last decade. This statement is incorrect. While trade has generally been significant, it has experienced fluctuations over the last decade due to various economic and political factors in both countries, including Sri Lanka's economic challenges. A consistent increase is not accurate.

2. "Textile and textile articles" constitute an important item of trade between India and Bangladesh. This statement is correct. India is a major supplier of raw materials like cotton and yarn to Bangladesh's flourishing ready-made garment industry. In return, Bangladesh exports textiles and readymade garments to India. This sector forms a significant component of their bilateral trade.

3. In the last five years, Nepal has been the largest trading partner of India in South Asia. This statement is incorrect. While Nepal is an important trading partner, Bangladesh has emerged as India's largest trading partner in South Asia in recent years, followed by countries like Sri Lanka and Nepal. The trade volume with Bangladesh generally surpasses that with Nepal.

Therefore, only statement 2 is correct.