India and the US on Friday reiterated their dedication to multilaterally addressing the difficulty of world supply-side disruptions which might be sparking meals and gasoline inflation; discussing rising monetary sector points akin to digital property and fee system, together with cryptocurrencies; and becoming a member of fingers to fight monetary crimes akin to terror funding, cash laundering, offshore tax evasion, and the unauthorised use of information.
India “deeply values” its relationship with the US as a “trusted” accomplice, Union finance minister Nirmala Sitharaman stated after the ninth US-India Economic and Financial Partnership (EFP) assembly with US Treasury Secretary Janet Yellen .
“I’m here at a pivotal moment for the global economy. We are dealing with a confluence of headwinds — the lingering effects of the pandemic, spillovers from Putin’s barbaric war in Ukraine, and macroeconomic tightening as many countries grapple with inflation,” Yellen advised reporters at Microsoft’s improvement centre in Noida, hours earlier than the EFP assembly.
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India and the US “remain committed to upholding the rules-based international order”, she added, expressing confidence in India taking part in a significant function as a dependable accomplice for “friendshoring” to minimise supply chain vulnerabilities. Friendshoring is the business technique of operating supply chains solely by way of nations which might be shut political companions.
After the EFP assembly in New Delhi, Union finance minister Sitharaman and Yellen stated in a joint assertion that the 2 companions had “productive discussions” on a variety of topics, together with the macroeconomic outlook, supply chain resilience, local weather finance, multilateral engagement, international debt vulnerabilities, and combating cash laundering and terror financing.
“Both countries will continue to work to enhance mutual collaboration in sharing of information to tackle offshore tax evasion,” the joint assertion stated.
The US and India look ahead to sustained engagement by way of the longstanding US-India Financial Regulatory Dialogue, a platform for discussing rising monetary sector points and precedence areas, together with banking and insurance sector reforms, capital market improvement, digital property and fee system modernisation, sustainable finance, and information safety and safety frameworks, it added.
Interacting with trade leaders , Yellen stated that there was a necessity for a excessive regulatory normal globally to cope with dangers related to cryptocurrencies. India has an analogous view on cryptocurrencies, that are at present unregulated within the nation, and is awaiting a world response earlier than framing a regulation on them.
Sitharaman careworn India was a vivid spot amid international financial gloom. Citing the newest World Economic Outlook of the International Monetary Fund, launched on October 11, she stated international financial actions are experiencing “a broad-based and sharper-than-expected slowdown, with inflation higher than in several decades”.
“The Indian economy is not insulated from the impact of global economic developments. However, India has carved out its growth trajectory supported by the above-normal south-west monsoon, public investment, strong corporate balance sheets, upbeat consumer and business confidence and receding threat of the pandemic,” she added.
India has emerged as one of many fastest-growing main economies on the earth. It has lately surpassed the UK to change into the fifth-largest economy, and is anticipated to be one of many prime three financial powers globally over the following 10-15 years, the finance minister stated.
“This resilience of India is not a stroke of luck. Instead, it has manifested from a conscious approach of pursuing and pushing structural reforms, believing in the spirit of Atmanirbhar Bharat (self-reliant India campaign), and adopting an agile and calibrated policy approach,” she stated.
Sitharaman additionally underscored the worth of bilateral ties between India and the US. “The strength of India-US relationship lies in mutual understanding of each one’s necessities and respecting the differences,” she stated. Bilateral commerce in items between the 2 nations crossed the $100 billion mark in 2021, making it the biggest quantity of products commerce in India-US financial historical past, she added.
The defence commerce between India and the US has reached greater than $20 billion from near-zero about 12 years in the past, she stated. “As our defence partnership evolves our defence industry welcomes opportunities for collaboration, especially to innovate, co-develop, and co-produce for India and the world,” she added.
The US Treasury and India’s finance ministry launched EFP in 2010 as a framework to cement the financial bonds between our two nations and construct a basis for larger cooperation and financial progress sooner or later.
Yellen stated that India-US collaboration won’t solely promote progress and stability, however could be instrumental to supporting financial prosperity throughout the Indo-Pacific area. “Looking ahead, we’re also eager to discuss our shared priorities as India assumes the presidency of the G20 in the coming weeks.”
