Correct Answer: Both statements are true.

Solution : The correct answer is (a) Both statements are true.

Statement 1 is true. The Pradhan Mantri Rojgar Protsahan Yojana (PMRPY) is a government scheme in India that provides financial incentives to employers for promoting employment generation. Under this scheme, the government pays the employer's contribution to the Employee Provident Fund (EPF) and Employee State Insurance (ESI) for new employees for a specified period. The scheme aims to reduce the financial burden on employers and encourage them to create more job opportunities.

Statement 2 is true. PMRPY is indeed aimed at increasing formal employment opportunities in India. By providing financial incentives to employers, the scheme encourages the formalization of employment and promotes the hiring of new employees. It aims to enhance job security, improve social security coverage, and boost formal sector employment in the country.