The United States, Japan, and South Korea announced on 26 October 2024 that they will launch a new framework to collaborate with the Indian private sector to support digital infrastructure in India. The new framework is called the Digital Infrastructure Growth Initiative for India Framework (DiGi Framework).
The United States, Japan, and South Korea announced a new framework aimed at enhancing collaboration with the Indian private sector. This initiative focuses on supporting India’s digital infrastructure. The announcement was made by key financial institutions, including the U.S. International Development Finance Corporation (DFC), the Japan Bank for International Cooperation (JBIC), and Korea Eximbank.
The Digital Infrastructure Growth Initiative for India Framework
The newly launched framework is called the Digital Infrastructure Growth Initiative for India (DiGi Framework). It was signed by leaders from DFC, JBIC, and Korea Eximbank. This framework aims to facilitate projects in the information and communications technology sector. Key areas of focus include 5G technology, Open RAN (Radio Access Network), Submarine cables, Optical fiber networks, Telecom towers, Data centers, Smart City initiatives, E-commerce, Artificial Intelligence (AI), and Quantum technology
Aim of the DiGi Framework
The DiGi Framework, in partnership with the Indian private sector, will promote investments in digital infrastructure in India.
It will provide support to meet the needs of strategic digital infrastructure deals in India.
It will support projects in the information and communications technologies (ICT) sectors like Open RAN (radio access network),5G in the telecom sector, submarine cables, optical fibre networks, telecom towers, data centres, smart cities, e-commerce, artificial intelligence(AI), and quantum technology.
The framework will also encourage and support dialogues with the Indian government and private sector so as to promote private sector funding for digital infrastructure projects in India.
Streamlined Process for Collaboration
The DiGi Framework establishes a streamlined process for collaboration among the three financial institutions and the Indian private sector. This process is designed to support strategic digital infrastructure projects in India. It will also enable policy dialogues between the Indian Government and the private sector. The goal is to promote private-sector funding for these digital infrastructure projects.
About the Institutions
The U.S. International Development Finance Corporation (DFC) was set up by the United States government in 2019. Its headquarters is in Washington, D.C.
It is an American government development financial institution that partners with the private sector to finance solutions to the most critical challenges facing the developing world, such as energy, healthcare, critical infrastructure, and technology.
Japan Bank for International Cooperation (JBIC)
The Japan Bank for International Cooperation (JBIC) was established by the Japanese government in 2012. Its headquarters is in Tokyo.
It is owned by the government of Japan, and it provides loans to foreign countries or foreign private companies so that they can get goods and services from Japanese companies.
The Export-Import Bank of Korea (Korea Eximbank)
The Export-Import Bank of Korea (Korea Eximbank) is owned by the South Korean government. It was established in 1976 and has its headquarters in Seoul.
It provides loans to foreign governments/companies so that they can buy South Korean goods and services.