India and the United States will set up a $10 billion infrastructure debt fund to help develop India's physical and social infrastructure, Commerce and Industry Minister Anand Sharma said on Monday.
"The governments of India and the United States have agreed in principle to set up the infrastructure debt fund on recommendation of the India-US CEO Forum," Sharma told reporters on the sidelines of a conference organised by the Confederation of Indian Industry and the US-India Business Council in New Delhi.
He said the India-US CEO Forum had recommended the $10 billion fund. "The details, including the amount of the fund, have to be worked out. But in principle we have agreed to set up the fund."
Sharma said India planned to invest $1 trillion in the infrastructure sector in the next five years and a substantial part of the investment would come from the private sector and overseas investment.
Earlier, US Under Secretary of Commerce for International Trade Francisco Sanchez said the Obama administration would encourage American investment in Indian infrastructure sector.
Sharma also said both countries had agreed to boost trade and investment in various sectors such as infrastructure, technology, pharmaceuticals and education.
"The CEO forum has made very focused and valuable inputs. Prime Minister Singh and President Obama have in principle agreed to accept most recommendations."
He said India would soon log double-digit growth and was likely to maintain it for at least a decade.