Assertion (A) : India does not export natural rubber. Reason (R) : About 97% of India’s demand for natural rubber is met from domestic production.

Assertion (A) is false because India does export natural rubber. While India is a major consumer and has historically been a net importer, it actively began exporting natural rubber in the early 2000s. In the years leading up to 2004, India's exports reached approximately 55,000 to 75,000 tonnes annually following the removal of quantitative restrictions in 2001.

Reason (R) is true. At the time of the 2004 exam, India maintained a very high level of self-sufficiency. Statistics from that era showed that domestic production covered approximately 97% to 98% of the domestic demand, making India one of the most self-reliant major producers of natural rubber globally.

Since the assertion is a factually incorrect absolute statement and the reason is a correct factual statement, the correct option is D.