INDIA-USA INVESTMENT INCENTIVE AGREEMENT

Disclaimer: Copyright infringement not intended.

Context

India and USA signed the Investment Incentive Agreement (IIA) in Tokyo, Japan which is expected to enhance investment support from America’s development finance institution in a wide range of sectors.

About IIA

The IIA was signed by foreign secretary Vinay Kwatra and Scott Nathan, the chief executive officer of the US International Development Finance Corporation (DFC).
The agreement is considered a legal requirement for DFC to continue providing investment support in India.
The agreement supersedes another similar pact signed between the governments of India and the US in 1997.
Cooperation under DFC:
- The proposals worth four billion dollars are under consideration by Corporation for providing investment support in India.
- The Corporation has provided investment support in sectors like COVID-19 vaccine manufacturing, healthcare financing, renewable energy, financial inclusion and infrastructure among others.
- DFC or its predecessor agencies have been active in India since 1974 and have provided investment support worth $5.8 billion, of which $2.9 billion is still outstanding.

India-U.S. Relations

India-U.S. bilateral relations have developed into a "global strategic partnership", based on shared democratic values and increasing convergence of interests on bilateral, regional and global issues.
Regular exchange of high-level political visits has provided sustained momentum to bilateral cooperation, while the wide-ranging and ever-expanding dialogue architecture has established a long-term framework for India-U.S. engagement.
Today, the India-U.S. bilateral cooperation is broad-based and multi-sectoral, covering trade and investment, defence and security, education, science and technology, cyber security, high-technology, civil nuclear energy, space technology and applications, clean energy, environment, agriculture and health.
Vibrant people-to-people interaction and support across the political spectrum in both countries nurture our bilateral relationship.