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India and US sign Investment Incentive Agreement

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India and US sign Investment Incentive Agreement

Recently, an ‘Investment Incentive Agreement (IIA)’ has been signed between India and the US.

The agreement is expected to enhance investment cooperation from the ‘Development Finance Institute of America’ in a wide range of areas.

  • The IIA agreement will replace another similar agreement signed in 1997 between the governments of India and the US.
  • The agreement is a legal requirement for the US International Development Finance Corporation (DFC) to continue to provide investment support in India.
  • Services offered through this agreement include loans, equity investments, investment insurance, investment guarantees or reinsurance, feasibility studies for potential projects and grants.

Source – The Hindu

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