This is an except question, so we hunt for the single false line. ARI simply means the chance of catching a fresh TB infection over a year, expressed as a percentage of the population, which validates the statement calling it the percentage of new infections. Because it tracks live transmission, ARI drops when control programmes work, making it a sensitive index of current trends, so that line is true. India has long been quoted with an ARI near 1.7%, again true. The conversion rule that examiners want is that each 1% of ARI translates to about 50 new infectious, smear positive cases per 100,000 people each year. The option claiming 75 cases per 100,000 misquotes this constant, so it is the incorrect statement and the answer to the except stem. $$\boxed{\text{1\% ARI gives 75 smear positive cases per 100,000 (false)}}$$