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Even after New Economic Policy 1991, foreign companies found it extremely difficult to cut through the bureaucratic red tape to get permits for doing business in India. Identify the dimension of business environment which posed a hurdle for foreign companies.

Solution

Correct Option: 3

Political environment includes bureaucratic processes, red tape, government attitude, and political stability. Difficulties in obtaining permits due to bureaucratic red tape reflect challenges in the political environment dimension of business environment.

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