The correct option states that both statements are accurate, with Statement-II serving as the rationale for Statement-I. The declaration of 7th August as National Handloom Day aims to honor the rich heritage of Indian handloom and promote the use of locally made products, drawing a symbolic connection to the Swadeshi Movement initiated on the same date in 1905, which encouraged self-sufficiency and the boycott of foreign goods. This historical context emphasizes the ongoing relevance of promoting indigenous industries as a means of fostering national pride and economic independence, reflecting key themes in India's socio-economic policy and cultural heritage as studied in UPSC preparation materials.