Explanation:

Red soil develops on crystalline igneous rocks in areas of low rainfall in the eastern and southern part of the Deccan Plateau. Along the piedmont zone of  the Western Ghat, long stretch of area is occupied by red loamy soil. Yellow and red soils are also found in parts of Odisha and Chattisgarh and in the southern parts of the middle Ganga plain. 

• The soil develops a reddish colour due to a wide diffusion of iron in crystalline and metamorphic rocks. It looks yellow when it occurs in a hydrated form.
• The fine-grained red and yellow soils are normally fertile, whereas coarse-grained soils found in dry upland areas are poor in fertility. They are generally poor in nitrogen, phosphorous, Potassium and humus. 

Hence both statements 1&2 are correct.