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India-US sign agreement with investment potential in India nearly $4 bn

The finance ministry further informed that IIA supersedes the Investment Incentive Agreement signed between India and US in the year 1997 and the agreement has been signed to keep pace with the additional investment support programmes, offered by the DFC, such as debt, equity investment, investment guaranty among others.Premium
The finance ministry further informed that IIA supersedes the Investment Incentive Agreement signed between India and US in the year 1997 and the agreement has been signed to keep pace with the additional investment support programmes, offered by the DFC, such as debt, equity investment, investment guaranty among others.

  • The finance ministry said that proposals worth $4 billion are under consideration by DFC for providing investment support in India

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India and US on Monday signed Investment Incentive Agreement (IIA) in Japan which is expected to boost investment in India by US International Development Finance Corporation (DFC), an official statement said on Monday.

The ministry of finance said that proposals worth $4 billion are under consideration by DFC for providing investment support in India. DFS provides investment in sectors such as covid-19 vaccine manufacturing, healthcare financing, renewable energy, SME financing, financial inclusion and infrastructure among others.

 “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 US, the BUILD Act 2018," the ministry said.

The ministry further informed that IIA supersedes the Investment Incentive Agreement signed between India and US in the year 1997 and the agreement has been signed to keep pace with the additional investment support programmes, offered by the DFC, such as debt, equity investment, investment guaranty among others. 

The agreement is the legal requirement for DFC, to continue providing investment support in India, the ministry further said, adding that 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. 

The new investment incentive agreement is yet another sign of strengthening economic cooperation between India and the US that moved through ups and downs during Trump administration. The agreement also is US acceptance of India's stand of neutrality in the ongoing Ukraine-Russia conflict despite the West pushing through a host of sanctions against Russia.

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