With reference to the Integrated Handloom Cluster Development Scheme, which among the following statements is / are correct?
1. The scheme links the handloom clusters to banks and markets by forming them into self-help groups and producer companies
2. The scheme encourages formation of weavers cooperatives
Select the correct option from the codes given below:

Answer: [C] Both 1 & 2

Main objectives of IHDS are to focus on formation of handloom weavers’ groups in selected handloom clusters, to up-grade skills of weavers to produce diversified products with improved quality, to provide suitable workplace to improve productivity, to provide any other need based inputs specific to each cluster/group for becoming self- sustainable etc. The scheme links handloom clusters to banks and markets by forming them into self-help groups and producer companies. But its reach is limited to just 20 handloom clusters in 13 states and there are no expansion plans to cover the 6.5 million employed in handloom weaving in the country, earning between Rs 30 and Rs 100 a day.

This question is a part of GKToday's Integrated IAS General Studies Module