Recently, India and the United States signed an Investment Incentive Agreement (IIA) at Tokyo, Japan. It supersedes the Investment Incentive Agreement signed between the Government of India and the Government of the United States of America in the year 1997.
Need: Significant developments have taken place since the signing of the earlier IIA in 1997 including the creation of a new agency called US International Development Finance Corporation (DFC), a development finance agency of the Government of the USA.
Significance: IIA has been signed to keep pace with the additional investment support programmes, offered by the DFC, such as debt, equity investment, investment guaranty, investment insurance or reinsurance, and feasibility studies for potential projects and grants.
