Read the passage and answer the following questions.

India's craft heritage is a reflection of its rich customs and traditions, deeply rooted in centuries of artistic excellence. The handicraft industry plays a significant role in the economy, offering immense potential for improving the balance of payments and earning foreign exchange earnings through exports. Understanding the business environment is crucial to charting a future course of action that supports artisans while promoting Indian advantages globally. In line with the Prime Minister's vision, the industry should be extended by linking traditional crafts with modern technology. Focus must be laid on changing the manufacturing process to ensure durability, meet global standards and foster innovation. This approach can open new markets and opportunities, boost India's soft power abroad, strengthen the sector that not only presences its heritage but also creates employment & sustainable livelihood.

"The volume of exports of these products gives India an advantage in Balance of Payments and much needed Foreign Exchange." Identify the Dimension of Business Environment.

Economic

The correct answer is option 1- Economic.

The statement "The volume of exports of these products gives India an advantage in Balance of Payments and much needed Foreign Exchange." clearly deals with exports, foreign exchange earnings, and balance of payments — all of which are key components of the Economic Environment.

The economic environment refers to the conditions and factors that affect the functioning of businesses and organizations within an economy. It encompasses various aspects related to the economic system. Some Components of Economic Environment are as follows-
* Existing structure of the economy in terms of relative role of private and public sectors.
* The rates of growth of GNP and per capita income at current and constant prices.
* Rates of saving and investment
* Volume of imports and exports of different items.
* Balance of payments and changes in foreign exchange reserves.
* Agricultural and industrial production trends.
* Expansion of transportation and communication facilities.
* Money supply in the economy.
* Public debt (internal and external).
* Planned outlay in private and public sector.