Step 1: Understanding the Concept:
Reservoirs represent a major inland water resource in India, spanning millions of hectares, with substantial untapped potential for boosting fish production.
Step 2: Detailed Explanation:
- Statement I: Although India has a massive area of small, medium, and large reservoirs, their average fish productivity remains very low (less than \(20\text{--}50\text{ kg/ha/year}\)) compared to their potential. Thus, they are considered under-utilized for fish production.
Hence, Statement I is correct.
- Statement II: Implementing intensive cage culture (using floating cages) for carps and other species is highly feasible in these reservoirs. It provides a controlled, highly productive method of increasing yield without interfering with other reservoir uses.
Hence, Statement II is correct.
Step 3: Final Answer:
Both Statement I and Statement II are correct, corresponding to option (A).