The United States is considering “investment support” of $4 billion for India on top of billions of dollars extended earlier, New Delhi said on Monday after the two sides signed an agreement to keep such money flowing.
The US International Development Finance Corporation (DFC) or its predecessor agencies have so far provided India with $5.8 billion, of which $2.9 billion is outstanding, for Covid-19 vaccine manufacturing, healthcare, renewable energy, financial inclusion and infrastructure.
“Proposals worth $4 billion are under consideration by DFC for providing investment support in India,” India’s Ministry of Finance said as officials from the two countries met in Tokyo where their leaders will hold a summit on Tuesday.
India and the US signed the new investment incentive agreement in the areas of debt, equity investment, investment guaranty, investment insurance and feasibility studies for potential projects and grants.
The ministry said the latest agreement “would lead to enhanced investment support provided by DFC in India”.
On Monday, US President Joe Biden and Indian Prime Minister Narendra Modi were among government heads from 13 countries who jointly launched a partnership called the Indo-Pacific Economic Framework for Prosperity.
Japan loan
The Export-Import Bank of India Exim Bank on Monday said it has signed a USD 100 million loan agreement with Japan Bank for International Cooperation (JBIC), along with three Japanese private financial institutions — MUFG Bank Ltd, Bank of Kyoto Ltd and Hachijuni Bank Ltd — aimed at supporting the Indian healthcare sector for combating Covid-19.
The agreement was signed on Monday on the sidelines of the Quad Leaders' Summit, Exim Bank said in a release.
“The purpose of this facility is to support the Indian healthcare sector related to combating Covid-19, including but not limited to vaccine manufacturers, pharmaceutical companies, manufacturers of personal protective equipment, medical oxygen or other medical devices, hospitals, and other related activities,” it said.
Meanwhile, describing the digital economy as a goose that lays golden eggs, the head of the US-India Business Council (USIBC) has called for the creation of structures, regulations and the legal framework to ensure the continued vitality and growth of this key sector in the US and India.
Addressing a conclave in Bangalore on Sunday, USIBC president Atul Keshap discussed India's development, the government-led digitisation efforts and the country's status as the fastest-growing large economy.
