Consider the following statements regarding the Indian squirrels: 1. They build nests by making burrows in the ground. 2. They store their food materials like nuts and seeds in the ground. 3. They are omnivorous. How many of the above statements are correct?

Let's analyze the statements regarding Indian squirrels:

1. They build nests by making burrows in the ground: This statement is incorrect for most common Indian squirrels. Indian palm squirrels (e.g., the Three-striped Palm Squirrel), which are widely distributed, primarily build their nests (dreys) in trees, using leaves, twigs, and other plant material. While some squirrel species globally (like ground squirrels) do burrow, this is not a general characteristic of the prevalent Indian squirrels for nesting.

2. They store their food materials like nuts and seeds in the ground: This statement is correct. Squirrels are well-known for their caching behavior, where they bury or hide nuts, seeds, and other food items in the ground or in tree cavities for later consumption. This behavior also aids in seed dispersal.

3. They are omnivorous: This statement is correct. While their diet primarily consists of nuts, seeds, fruits, and bark, Indian squirrels are opportunistic feeders. They are known to supplement their diet with insects, bird eggs, and even small vertebrates, making them omnivorous.

Therefore, statements 2 and 3 are correct. So, 'Only two' is the answer.