The 1950s and 1960s saw the emergence of the Cold War, that is, power rivalries and ideological conflicts between the USA and the USSR, with both countries creating military alliances. Hence statement 1 is correct.
This was also the period when colonial empires were collapsing and many countries were attaining independence.
Prime Minister Jawaharlal Nehru, who was also the foreign minister of newly independent India, developed free India's foreign policy in this context.
Nonalignment formed the bedrock of this foreign policy.
With Yogoslavia, Ghana, Egypt and Indonesia, he formed the non-alignment movement.
NAM was equally important for India and the majority of African nations determined to pursue an independent foreign policy, especially against the backdrop of the bipolar Cold War world. Hence statement 2 is correct.