India-US Investment Incentive Agreement
On 23rd May 2022, India and the USA signed the Investment Incentive Agreement (IIA) in Tokyo. The agreement was signed by India’s foreign secretary and CEO of the US International Development Finance Corporation (DFC). The investment Incentive Agreement (IIA) is a legal requirement for DFC to continue providing investment support to India.
What is the agreement about?
The agreement will help in increasing the investment support from USA’s development finance institution in various sectors. The investment support is given in the form of debt, equity investment, investment guaranty, reinsurance, grants, etc. IIA supersedes another similar pact signed between India and the USA in 1997.
What is US International Development Finance Corporation (DFC)?
US International Development Finance Corporation (DFC) is the successor agency of the erstwhile Overseas Private Investment Corporation (OPIC), established after the enactment of the Better Utilization of Investments Leading to Development (BUILD) Act of 2018. DFC or its predecessor agencies like Overseas Private Investment Corporation (OPIC) provided investment support worth USD 5.8 billion since 1974. Currently, DFC is considering proposals worth USD 4 billion. DFC provided investment support in various sectors such as healthcare, renewable energy, financial inclusion, etc. DFC is also involved in funding the vaccine manufacturing capabilities under the vaccine partnership of Quad.
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Month: Current Affairs - May, 2022
Category: International / World Current Affairs