With reference to 'Red Sanders', sometimes seen in the news, consider the following statements : 1. It is a tree species found in a part of South India. 2. It is one of the most important trees in the tropical rain forest areas of South India. Which of the statements given above is/are correct?

Statement 1 is correct because Red Sanders (*Pterocarpus santalinus*) is an endemic tree species found in a restricted area of the Eastern Ghats in South India, primarily in the Seshachalam hills of Andhra Pradesh. Statement 2 is incorrect because Red Sanders thrives in **tropical dry deciduous forests** and rocky terrain, rather than tropical rain forests which require high rainfall. This question tests the core concept of the geographical distribution and specific ecological habitats of endemic Indian flora.