Correct Option (D)
Assumption I is invalid. The passage critically examines the prevailing narrative surrounding State support for the handloom sector, rather than advocating for a complete absence of State involvement. It implies a need for re-evaluation of the approach to support, not its outright abolition.
Assumption II is also invalid. The passage indicates that handloom products are often overlooked due to their perceived association with a restrictive interpretation of tradition. This suggests a challenge in perception and marketing, not an inherent lack of appeal or relevance in the contemporary world.
Since neither assumption I nor II is valid based on the provided passage, option D is the correct choice.
Incorrect Options:
Options A, B, and C are incorrect because both assumptions I and II are not supported by the passage. The passage does not suggest that State involvement is unnecessary (invalidating I), nor does it state that handloom products inherently lack appeal (invalidating II). Therefore, options asserting the validity of either one or both assumptions are incorrect.