To determine the correct sequence of the decreasing order of the imported items by India, based on the 94-95 figures, let`s analyze the given options and their corresponding items:

Option 1: I, II, III, IV, V

Option 2: I, II, IV, III, V

Option 3: II, I, III, IV, V

Option 4: II, I, IV, V, III

We need to identify the correct sequence based on the value of the imported items. Generally, capital goods, petroleum, pearls and precious stones, chemicals, and iron and steel are major imports for many countries. However, to determine the specific order for India, we`ll consider additional information.

Historically, India has been a major importer of petroleum due to its high energy requirements. It heavily relies on petroleum imports to meet its energy demands. Therefore, petroleum is likely to be one of the highest-valued imported items.

India is also known for its extensive import of capital goods. Capital goods include machinery, equipment, and industrial tools, which are crucial for India`s manufacturing and infrastructure development. Capital goods are typically valued highly as they contribute to economic growth.

Pearls and precious stones are significant imports for India due to its rich cultural heritage and demand for jewelry. India is one of the world`s largest consumers and importers of gems and jewelry. These items are generally valuable and could be ranked third or fourth.

Chemicals are vital for various industries, including pharmaceuticals, agriculture, and manufacturing. India has a large chemical industry and imports several chemicals to meet domestic demands. Although important, the value of chemical imports may be lower than that of petroleum, capital goods, and precious stones.

Iron and steel are essential commodities for construction, infrastructure, and manufacturing sectors. India has a significant iron and steel industry and is one of the world`s largest importers. While valuable, iron and steel might have a relatively lower value compared to the other items.

Based on this analysis, let`s evaluate the given options:

Option 1: I, II, III, IV, V (Capital goods, petroleum, pearls and precious stones, chemicals, iron and steel)

Option 2: I, II, IV, III, V (Capital goods, petroleum, chemicals, pearls and precious stones, iron and steel)

Option 3: II, I, III, IV, V (Petroleum, capital goods, pearls and precious stones, chemicals, iron and steel)

Option 4: II, I, IV, V, III (Petroleum, capital goods, chemicals, iron and steel, pearls and precious stones)

Considering the analysis, Option 4 (II, I, IV, V, III) seems to be the most logical choice. It aligns with India`s historical import patterns, where petroleum tends to have the highest value, followed by capital goods, chemicals, iron and steel, and then pearls and precious stones.

Please note that the analysis is based on general trends and historical patterns. Actual import figures may vary depending on various factors such as global market conditions, domestic policies, and specific time periods.