In order to boost and double India’s export of goods and services to over USD 1,000 billion by 2025, it is important to lower effective corporate tax rate, bring down the cost of capital and simplify the regulatory and tax framework. Identify the related dimension of the business environment.
Answer & explanation
Correct answer: option 4
The related dimensions of the business environment in this context are Economic dimension and Legal dimension.
Economic Dimension: Lowering the effective corporate tax rate and bringing down the cost of capital are economic strategies. These measures directly impact the economic conditions that businesses operate in, aiming to create a more favorable environment for export growth.
Legal Dimension: Simplifying the regulatory and tax framework involves legal aspects. This is about creating a legal environment that is conducive to business activities, especially in the context of international trade and export.