
Foreign Investment | 609
manufactured exports has steadily increased over the 1990s to 44 per cent. The
MNC aliates account for over 80 per cent of China’s high-technology exports.
India has not imposed the export obligations on MNC aliates except for those
entering the products that are reserved for the SMEs. However, indirect export
obligations in the form of dividend balancing have been imposed for enterprises
the are producing primarily consumer goods (since phased out in 2000). Under
these policies, a foreign enterprise is obliged to earn the foreign exchange that it
wishes to remit abroad as a dividend, so that there is no adverse impact ...