India, US sign key investment incentive agreement

India and the US on Monday signed an investment incentive agreement to promote US investments in the key sectors of the country.

The India-USA Investment Incentive Agreement (IIA) was signed by Foreign Secretary Vinay Kwatra and the CEO of US International Development Finance Corporation (DFC), Scott Nathan on the sidelines of the Quad summit here.

"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.

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 agreement provides a framework for DFC to continue to expand its investment in India -- for private sector-led projects in critical areas such as renewable energy, agriculture, healthcare, and SME financing.