India and the US on Monday signed an investment incentive agreement to promote US investments in the key sectors of the country.
The agreement was signed by India's Foreign Secretary Vinay Kwatra and Chief Executive Officer of US International Development Finance Corporation Scott Nathan.
It is expected that signing of this agreement would lead to enhanced Investment support provided by Development Finance Corporation in India which will further help in country's development. Ministry of Finance said, proposals worth four billion dollars are under consideration by Corporation for providing investment support in India.
"Foreign Secretary Vinay Kwatra and CEO @DFCgov Scott Nathan sign the India-USA Investment Incentive Agreement (IIA). The signing of IIA would lead to enhanced investment support provided by @DFCgov in India, thereby encouraging investment in key sectors," MEA spokesperson Arindam Bagchi tweeted.
After the event PM Modi in a tweet wrote, “Met top business leaders in Tokyo. Our conversations focussed on diverse topics ranging from innovation to investments, tech to textiles, reforms to StartUps. There is great enthusiasm towards India and there is great appreciation for the entrepreneurial skills of India’s youth.”
During the Fourth India-US 2+2 Ministerial Dialogue in April, US Secretary of State Antony J Blinken, Secretary of Defence Lloyd J Austin III, Indian Minister of Defence Rajnath Singh and Minister of External Affairs S Jaishankar had noted the substantial progress in negotiations for IIA between the governments of India and the US.
The Corporation has provided investment support in sectors like COVID-19 vaccine manufacturing, healthcare financing, renewable energy, financial inclusion and infrastructure among other.
The Corporation or its predecessor agencies are active in India since 1974 and have so far provided investment support worth 5.8 billion dollar. This Incentive Agreement supersedes the earlier agreement signed in the year 1997 between India-US.
The agreement has been signed to keep pace with the additional investment support programmes offered by the Development Finance Corporation.
Prior to this business event, PM Modi met with a number of top Japanese leaders such as CEO of Fast Retailing, the parent company of Uniqlo, Tadashi Yanai and Dr. Nobuhiro Endo, Chairman, NEC Corporation.
While Yanai appreciated the entrepreneurial zeal of Indians, PM Modi discussed with him Uniqlo’s growing presence in India and investment opportunities for textile manufacturing under Production Linked Incentive (PLI) scheme.
Meanwhile, Prime Minister appreciated NEC’s role in India’s telecommunication sector, especially in undertaking Chennai-Andaman & Nicobar Islands (CANI) and Kochi-Lakshadweep Islands (KLI) OFC projects.
Image source: ANI