India and the US on Friday reiterated their dedication to multilaterally addressing the difficulty of world supply-side disruptions which can be sparking meals and gas inflation; discussing rising monetary sector points reminiscent of digital property and fee system, together with cryptocurrencies; and becoming a member of arms to combat monetary crimes reminiscent of terror funding, cash laundering, offshore tax evasion, and the unauthorised use of information.
India “deeply values” its relationship with the US as a “trusted” associate, Union finance minister Nirmala Sitharaman mentioned after the ninth US-India Financial and Monetary Partnership (EFP) assembly with US Treasury Secretary Janet Yellen .
“I’m right here at a pivotal second for the worldwide economic system. We’re coping with a confluence of headwinds — the lingering results of the pandemic, spillovers from Putin’s barbaric warfare in Ukraine, and macroeconomic tightening as many international locations grapple with inflation,” Yellen informed reporters at Microsoft’s growth centre in Noida, hours earlier than the EFP assembly.
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India and the US “stay dedicated to upholding the rules-based worldwide order”, she added, expressing confidence in India enjoying a significant function as a dependable associate for “friendshoring” to minimise provide chain vulnerabilities. Friendshoring is the enterprise technique of working provide chains solely via international locations which can be shut political companions.
After the EFP assembly in New Delhi, Union finance minister Sitharaman and Yellen mentioned in a joint assertion that the 2 companions had “productive discussions” on a variety of topics, together with the macroeconomic outlook, provide chain resilience, local weather finance, multilateral engagement, world debt vulnerabilities, and combating cash laundering and terror financing.
“Each international locations will proceed to work to boost mutual collaboration in sharing of data to sort out offshore tax evasion,” the joint assertion mentioned.
The US and India stay up for sustained engagement via the longstanding US-India Monetary Regulatory Dialogue, a platform for discussing rising monetary sector points and precedence areas, together with banking and insurance coverage sector reforms, capital market growth, digital property and fee system modernisation, sustainable finance, and information safety and safety frameworks, it added.
Interacting with trade leaders , Yellen mentioned 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 presently unregulated within the nation, and is awaiting a world response earlier than framing a legislation on them.
Sitharaman careworn India was a brilliant spot amid world financial gloom. Citing the most recent World Financial Outlook of the Worldwide Financial Fund, launched on October 11, she mentioned world financial actions are experiencing “a broad-based and sharper-than-expected slowdown, with inflation greater than in a number of many years”.
“The Indian economic system just isn’t insulated from the affect of world financial developments. Nevertheless, India has carved out its progress trajectory supported by the above-normal south-west monsoon, public funding, robust company steadiness sheets, upbeat client and enterprise confidence and receding menace of the pandemic,” she added.
India has emerged as one of many fastest-growing main economies on the planet. It has not too long ago surpassed the UK to turn out to be the fifth-largest economic system, and is anticipated to be one of many high three financial powers globally over the following 10-15 years, the finance minister mentioned.
“This resilience of India just isn’t a stroke of luck. As an alternative, it has manifested from a acutely aware strategy of pursuing and pushing structural reforms, believing within the spirit of Atmanirbhar Bharat (self-reliant India marketing campaign), and adopting an agile and calibrated coverage strategy,” she mentioned.
Sitharaman additionally underscored the worth of bilateral ties between India and the US. “The energy of India-US relationship lies in mutual understanding of every one’s requirements and respecting the variations,” she mentioned. Bilateral commerce in items between the 2 international locations 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 mentioned. “As our defence partnership evolves our defence trade welcomes alternatives for collaboration, particularly 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 higher cooperation and financial progress sooner or later.
Yellen mentioned that India-US collaboration is not going to solely promote progress and stability, however might be instrumental to supporting financial prosperity throughout the Indo-Pacific area. “Trying forward, we’re additionally keen to debate our shared priorities as India assumes the presidency of the G20 within the coming weeks.”