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  • DAILY CURRENT AFFAIRS:India and U.S signs Investment Incentive Agreement to boost US investment in India

India and U.S signs Investment Incentive Agreement to boost US investment in India

Tags: International Relations

The Government of India and the Government of the United States of America have signed an Investment Incentive Agreement (IIA) in Tokyo, Japan on 23 May 2022. The agreement was signed by Indian Foreign Secretary Vinay Kwatra and Mr. Scott Nathan, Chief Executive Officer, U.S. International Development Finance Corporation (DFC).

  • Indian Prime Minister Narendra Modi and the American President Joe Biden are in Tokyo to attend the Quad Summit meeting to be held on 24 May 2022 in Tokyo.
  • The agreement is significant as it shows the United States commitment to India despite the disagreement between the two countries on Russian invasion of Ukraine and India’s consistent refusal to condemn it.
  • This IIA supersedes the Investment Incentive Agreement signed between the Government of India and the Government of the United States of America in the year 1997.
  • The DFC, a development finance agency of the US government, is currently considering investment proposals worth $4 billion for India.
  •  The DFC or their predecessor agencies have been active in India since 1974 and have so far provided investment support worth $5.8 billion, of which $2.9 billion is still to be invested.
  • U.S. International Development Finance Corporation (DFC) is the U.S. Government's development finance institution. DFC invests in the private sector of the developing world.
  • It invests across sectors including energy, healthcare, critical infrastructure, and technology.

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