With reference to the international trade of India at present, which of the following statements is/are correct? 1. India's merchandise exports are less than its merchandise imports. 2. India's imports of iron and steel, chemicals, fertilisers and machinery have decreased in recent years. 3. India's exports of services are more than its imports of services. 4. India suffers from an overall trade/current account deficit. Select the correct answer using the code given below:

1. Statement 1 is correct. India consistently runs a merchandise trade deficit, meaning its merchandise imports are greater than its merchandise exports. 2. Statement 2 is likely incorrect. While specific items might fluctuate year-on-year, major categories like iron and steel, chemicals, and machinery are significant imports tied to industrial and infrastructural activity. A general decrease across all these in the recent years leading up to 2020 was not the prevailing trend; imports often increase with economic growth. Fertiliser imports also vary based on domestic needs. 3. Statement 3 is correct. India typically has a trade surplus in services, meaning its exports of services (driven largely by IT and software services) are more than its imports of services. 4. Statement 4 is correct. Due to the large merchandise trade deficit usually outweighing the services trade surplus and net remittances, India generally suffers from an overall trade/current account deficit. 5. Based on the analysis, statements 1, 3, and 4 appear correct. However, the official UPSC answer key marked this question as 'X' (cancelled), possibly due to ambiguity in statement 2 regarding the timeframe of "recent years" or specific data fluctuations for the mentioned commodities.