India and the United States sign a key investment incentive agreement in Tokyo, Japan

New Delhi: The Government of India and the Government of the United States of America signed an Investment Incentive Agreement (IIA) today in Tokyo, Japan. The IIA was signed by Vinay Kwatra, Foreign Minister of the Government of India, and Scott Nathan, Managing Director of the US International Development Finance Corporation (DFC).

This IIA supersedes the Investment Incentive Agreement signed between the Government of India and the Government of the United States of America in 1997. 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 the United States government, as the successor agency to the former Overseas Private Investment Corporation (OPIC) after the enactment of recent United States legislation, the BUILD Act 2018. IIA was signed, to keep pace with the additional investment support programs, offered by the DFC, such as debt, equity, investment guarantee, investment insurance or reinsurance , and feasibility studies for potential projects and grants.

The agreement is the legal obligation for DFC to continue to provide investment support in India. The DFC or its predecessor agencies have been active in India since 1974 and have so far provided investment support worth $5.8 billion, of which $2.9 billion is still unpaid. Proposals worth $4 billion are being considered by DFC to provide investment support in India. DFC has provided investment support in sectors important for development such as COVID-19 vaccine manufacturing, healthcare financing, renewable energy, SME financing, financial inclusion, infrastructure, etc

It is expected that the signing of the IIA will lead to increased investment support provided by DFC in India, which will further contribute to India’s development.

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