Governments worldwide are increasingly prioritizing environmental concerns. In a recent move, several state governments have issued directives to prohibit the use of non-biodegradable polythene bags. To support this eco-friendly initiative, subsidies have been granted to the jute industry for the production of bags. The government's rationale behind this decision is based on the belief that, given the rise in people's incomes, they can afford jute bags as an alternative. In the wake of this subsidy, Puri identified significant potential in the untapped market of jute multi-pocket bags, a business concept that had thrived in the USA during his graduation. seizing the opportunity, he launched his product, and the business witnessed remarkable growth. Subsequently, other companies entered the market, introducing various articles and innovations to meet the growing demand.

Which aspect of the business environment is emphasized in the line, "As a result, the government also decided to give a subsidy to the jute industry (bags)"?

Political

The passage highlights a government decision to provide a subsidy, indicating a political dimension as it involves government policies and intervention.