The correct option is 1 and 3 only.
Explanation
The development of modern Indian art in the early 20th century was shaped by the ideological struggle between the colonial administration's preference for Western academic realism and the rising nationalist movement's advocacy for indigenous artistic traditions. This conflict primarily played out between the Bombay School of Art (Western-oriented) and the Bengal School of Art (Nationalist/Revivalist).
Statement 1 is Correct:
The British Raj's art policy, particularly under the influence of architects like Edwin Lutyens who designed New Delhi, favored Western academic styles. Lutyens was critical of the "Oriental" style advocated by the Bengal School. Consequently, the commission to decorate the dome and walls of the Imperial Secretariat (now North and South Blocks) in New Delhi was awarded to students of the Bombay School of Art (Sir J.J. School of Art), who were trained in the Western naturalist tradition preferred by the colonial authorities.
Statement 2 is Incorrect:
Bengal School artists were not completely banned from working in London. While they were sidelined for the New Delhi project, Indian artists, including those influenced by the nationalist style, were employed to decorate India House in London (built between 1925-1930). The decoration of India House was a significant project where Indian artists were given the opportunity to execute murals, contradicting the claim of a complete ban.
Statement 3 is Correct:
Modern art in India emerged directly from the dialectic between colonialism and nationalism. The imposition of Western academic art education by colonial schools and the counter-movement by nationalist artists (like Abanindranath Tagore and Nandalal Bose) to revive Indian aesthetics created a fertile ground for debate. This conflict forced artists to negotiate their identity, leading to the birth of Indian Modernism.
Key Takeaway:
The Bombay School of Art was favored for the Lutyens' Delhi project due to its alignment with Western realism, while the Bengal School represented the nationalist counter-narrative. However, Indian artists were not banned from London and notably contributed to the decoration of India House.