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India And USA Sign New Investment Incentive Agreement

The IIA was signed by Vinay Kwatra, Foreign Secretary, the Indian government and Scott Nathan, Chief Executive Officer, U.S. International Development Finance Corporation (DFC)

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The Indian government on Monday signed an investment incentive agreement (IIA) with the United States of America in Tokyo to enhance investment support provided by DFC in India, which will further help in India’s development.

According to the Prime Minister's Office (PMO), several developments have taken place including the creation of a new agency called DFC, a development finance agency of the government of the USA, 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 programmes, offered by the DFC, such as debt, equity investment, investment guaranty, investment insurance or reinsurance, feasibility studies for potential projects and grants," PMO said. 

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 USD 5.8 billion of which USD 2.9 billion is still outstanding, it said. 

"Proposals worth USD 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," PMO said. 

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india usa Investment Incentive Agreement