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India and the US on Monday signed an Investment Incentive Agreement (IIA). It will supersede one, signed 25 years back.
Foreign Secretary Vinay Kwatra signed the agreement in Tokyo on behalf of India while Chief Executive Officer of US International Development Finance Corporation (DFC), Scott Nathan did the same for US.
A statement issued by the Finance Ministry here noted significant developments have taken place since the signing of the earlier IIA in 1997 including the creation of a new agency called DFC, a development finance agency of Government of USA, as a successor agency of the erstwhile Overseas Private Investment Corporation (OPIC) after the enactment of a recent legislation of USA, the BUILD Act 2018.
Investment support
“The agreement is the legal requirement for DFC, to continue providing investment support in India,” the statement said. DFC or their predecessor agencies are active in India since 1974 and have so far provided investment support worth $5.8 billion of which $2.9 billion is still outstanding. Proposals worth $4 billion are under consideration by DFC for providing investment support in India. DFC has provided investment support in sectors that matter for development such as Covid-19 vaccine manufacturing, healthcare financing, renewable energy, SME financing, financial inclusion, infrastructure etc.
“It is expected that signing of IIA would lead to enhanced Investment support provided by DFC in India, which shall further help in India’s development,” the statement said.
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