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5th India-U.S. Economic and Financial Partnership Dialogue
Feb 19, 2015

The Finance Minister of India Arun Jaitley and U.S. Secretary of the Treasury Jacob J. Lew met recently in New Delhi for the 5th Annual India-U.S. Economic and Financial Partnership. Reserve Bank of India Governor Raghuram Rajan and U.S. Federal Reserve Board Vice Chairman Stanley Fischer and other senior officials from both the countries also participated in the meeting. 

 Key Issues 

  • Both countries commit to build on the new dynamism of a renewed India-U.S. partnership for the 21st century through Shared Effort, Progress for All

  • Significant efforts have been taken by both sides in recent months to re-energize the bilateral and strategic partnership that has elevated the partnership to an unprecedented level and scale. 

  • There is shared interest in promoting policies that foster higher and more sustainable economic growth, job creation.

  • As far as India is concerned financial stability has enabled it to coordinate on a wide range of issues including investment promotion, financial sector regulation, infrastructure development, tax policy, and combating money laundering and the financing of terrorism.

  • India-US agreed that they would continue to grow their diversified partnership through enhanced consultations and economic cooperation.

  • Both countries discussed recent economic and financial developments in the two economies, and in the global economy at large. 

  • Both countries noted the challenges their economies face and agreed that sound macroeconomic policies, structural reforms, and strong prudential frameworks will help boost economic growth and increase resilience to financial market volatility. 

  • India-US reviewed the growing trade and investment flows between them. They agreed that continued collaboration to increase bilateral trade and investment flows would enhance opportunities for Indian and U.S. citizens through greater economic growth and job creation, providing mutual benefits to both the countries. 

  • They emphasized the importance of strengthening international financial institutions, including the World Bank and International Monetary Fund. 

  • India-US noted the need for an early conclusion of reciprocal arrangement on the Foreign Account Tax Compliance Act and look forward to working for an early adoption of the new global standards on automatic exchange of information on a fully reciprocal basis for getting information about unaccounted money hoarded in offshore jurisdictions and tax havens. 

  • The USA said deeper and more liquid capital markets in India will facilitate greater foreign investment across sectors, including infrastructure. 

  • Streamlining procedures for directly accessing India’s onshore financial markets and allowing foreign investors to invest in a way that more directly benefits the India end-user, instead of the use of parallel off-shore markets with a chain of intermediaries, would lead to greater efficiencies and more funds available to finance investment. 

  • India underscored the need to build a broader set of financing opportunities for entrepreneurs and firms, including a more vibrant corporate bond market. 

  • The two countries commit to collaborate on technical assistance in the area of public debt management. 

  • India-US will encourage officials on both sides to continue to evolve ambitious plans to further the Partnership. 

 


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