India-U.S. Financial and Economic Partnership Launched

April 7, 2010 Posted by India Briefing Reading Time: < 1 minute

Increased investment by U.S. businesses expected in India

Apr. 7 – India and the United States launched the “India-U.S. Financial and Economic Partnership,” in New Delhi on Tuesday to help ease the entry of foreign capital into both countries.

The initiative is aimed at encouraging more trade, investment and job creation by improving macroeconomic policy, financial sector reforms and infrastructure financing. Specific details of the deal are slated to be discussed during the partnership’s next cabinet-level meeting in Washington.

Union Finance Minister Pranab Mukherjee was quoted by The Hindu as saying that immediate-term changes could open up the possibility of attracting more funds for the Indian infrastructure sector which requires over US$600 billion in the next five years. “Details will be discussed at the official level. We also emphasized on the public-private partnership,” he said.

Explaining America’s stance on the matter, U.S. Treasury Secretary Timothy F. Geithner said the Obama administration wanted other countries to step up their internal consumption and increase opportunities for the U.S. corporate sector.

“The critical challenge as the United States moves away from consumption financed by borrowing is that we want to see broader reforms and changes outside…this requires changes in rest of the world,” Geithner was quoted by The Hindu as saying.