New Investment Incentive Agreement – Deal to supersede IIA inked in 1997
India and the United States of America have signed an Investment Incentive Agreement (IIA) in Tokyo, Japan. The new agreement supersedes the earlier agreement signed between the two countries in 1997, an official statement said.
India’s Foreign Secretary Vinay Kwatra and Scott Nathan, Chief Executive Officer, US International Development Finance Corporation (DFC) signed the IIA.
The Ministry of External Affairs noted, “It is expected that signing of the IIA would lead to enhanced Investment support provided by DFC in India, which shall further help in India’s development.”
The MEA said, “Significant developments have taken place since the signing of the earlier IIA in 1997 including the creation of a new agency called the United States International Development Finance Corporation (DFC) as a successor agency of the erstwhile Overseas Private Investment Corporation (OPIC) after the enactment of the recent legislation of the USA, the BUILD Act 2018. IIA has been signed, to keep pace with the additional investment support programs, offered by the DFC, such as debt, equity investment, investment guaranty, investment insurance or reinsurance, feasibility studies for potential projects and grants.”
The ministry added, “The agreement is the legal requirement for DFC to continue providing investment support in India. DFC or their 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 outstanding.”
The DFC earlier 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.
The DFC is also considering proposals worth $4 billion for providing investment support in India.
[With Inputs from IANS]
PGurus is now on Telegram. Click here to join our channel and stay updated with all the latest news and views
For all the latest updates, download PGurus App.
- RBI issues draft directions on cyber resilience, digital payment security controls for payment system operators - June 2, 2023
- Odisha: Coromandel Express overturns after hitting goods train at Balasore; fatalities feared - June 2, 2023
- Bombay HC denies relief to gangster Chhota Rajan’s plea staying the web series ‘Scoop’ - June 2, 2023
