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The first statement is correct. Photovoltaics is a system that converts light directly into electricity using materials which exhibit the photovoltaic effect. Solar thermal technology, on the other hand, harnesses heat from the sun`s rays, which can then be used to produce electricity in a conventional steam turbine.
The second statement is incorrect. Photovoltaics actually generate Direct Current (DC), not Alternating Current (AC). The DC electricity generated by photovoltaic cells must be converted to AC for use with commercial appliances or for feeding into the grid. On the other hand, solar thermal produces AC through a standard generation process.
The third statement is also incorrect. India does indeed have manufacturing for both solar thermal technology and photovoltaics. In fact, India is a global leader in the production of photovoltaic cells.
Therefore, only statement 1 is correct making Option 1 the best choice.