Statements 1 and 2 are correct. PMGKAY is a food security welfare schemes and it helps to boost the economy by increasing consumption and supporting the agricultural sector.

It was launched by the Government of India in 2020 to provide free food grains to vulnerable households affected by the COVID-19 pandemic. The scheme was initially launched for three months, but it has been extended several times due to its effectiveness in providing food security to millions of people.

Under PMGKAY, each beneficiary gets free 5 kg of food grain per month, in addition to the PDS scheme (an extra 5 kg of food grain per month supplied at a subsidised price).

PMGKAY has also provided support to the agricultural sector by increasing demand for food grains and providing an additional source of income for farmers. This has helped to stabilize agricultural prices and support the incomes of farmers, which is crucial for ensuring food security in India.

In addition to the direct economic benefits, PMGKAY has also had other positive impacts, such as reducing food insecurity and malnutrition, and improving the health of poor and vulnerable households.

Source: ForumIAS