New Delhi | India and the US on Monday signed an Investment Promotion Agreement (IIA) in Tokyo, Japan. It will replace the Investment Promotion Agreement signed between the Government of India and the US Government in the year 1997. This information has been given in an official statement.
On this investment promotion agreement, Foreign Secretary of India Vinay Kwatra and U.K. s. It was signed by Scott Nathan, Chief Executive Officer of the International Development Finance Corporation (DFC).
India’s Ministry of External Affairs said in a statement, “This investment promotion agreement will replace the investment promotion agreement signed between India and the US government in 1997. In the past, significant progress has been made since the signing of the investment promotion agreement in 1997.” including the creation of a new agency named DFC. This investment promotion agreement was signed to keep pace with the additional investment support programs offered by DFC such as loans, equity investments, investment guarantees, investment insurance or reinsurance, feasibility studies for potential projects and grants Huh.”
According to the statement, “This agreement is a legal requirement for DFC to continue to provide investment support in India. DFCs or their predecessor agencies have been active in India since 1974 and have provided investment assistance of $5.8 billion to date, Of which $2.9 billion is still outstanding.”
The statement further said that DFC’s proposals worth $4 billion are being considered for providing investment support in India. DFC has provided investment support in areas critical for development such as COVID-19 vaccine production, healthcare financing, renewable energy, financing of small and medium enterprises (SMEs), financial inclusion, and infrastructure.
“The signing of this Investment Promotion Agreement is expected to enhance the investment support provided by DFCs in India, which will further aid India’s development,” the Ministry of External Affairs said.