Trilateral Development Corporation (TDC) Fund

India and the United Kingdom have launched their Global Innovation Partnership (GIP) as both countries look to bolster their innovation ecosystem to benefit the start-ups. GIP is expected to provide a model for utilizing the Trilateral Development Corporation (TDC) Fund for projects with other countries like Germany, Japan, the European Union, France, etc that are willing to work with India on the field of development and innovation. The GIP will be co-financed by India and the UK.

Development of the Trilateral Development Corporation Fund

The TDC fund has been recently launched by India to involve private sectors with the support of the state for investments in the Indo-Pacific region. This region comprises the Indian Ocean, the central and western Pacific Ocean, and the seas that connect the two around Indonesia and beyond.

Aim of the TDC Fund

India has aims of using the TDC Fund to contribute to the GIP that will help in globalizing the Indian innovations and start-ups with help like developmental capital investment, grants, and tech assistance. Investments through this fund will be increased in those places where Indian companies are already investing. The TDC Fund will be providing an alternative to the development partnership model of China that has deepened the influence of China over some of India’s neighbours and has pushed those countries into debt traps.

About China’s Debt Trap

China has been increasing its influence on India’s neighbours like Bangladesh, Nepal, Myanmar, Mauritius, and Sri Lanka. China first spots a troubled nation and offers them money as commercial lending. The contracts are received by Chinese companies and the struggling countries owe their debts to China. The collateral cash is deposited in a China-controlled off-shore account and if the countries are not able to pay interest or repay their debt China gets hold of the real estate in the form of equity.

Conclusion

To counter this Chinese influence, the UK and India have partnered to launch the GIP and the Trilateral Development Corporation fund.

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