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Sixth Annual India-US Economic and Financial Partnership Meet
Apr 21, 2016

The Union Finance Minister Arun Jaitley and U.S Treasury Secretary Jacob J. Lew met for the Sixth Annual U.S.-India Economic and Financial Partnership (EFP) in Washington D.C. on April 14. Federal Reserve Chairperson Janet Yellen and Reserve Bank of India Governor Raghuram Rajan were also present in the meeting.

At this meeting, the last for the Obama Administration, both leaders took stock of the impressive efforts that have been undertaken by both sides to deepen mutual understanding, and to improve cooperation across a wide range of bilateral and multilateral issues.

Key Points

  • The United States Treasury and India’s Ministry of Finance launched Economic and Financial Partnership in 2010 as a framework commensurate with the growing importance of our economic relationship and the significant business and cultural ties that already exist between two nations.

  • Contributing to bilateral relationship, five work streams have been underway at the sub-cabinet level in India and the United States. Progress has been made on all fronts.

  • Over the past year, tax authorities of both countries resolved a significant portion of bilateral tax disputes between the United States and India.

  • India and the US have begun to accept bilateral Advance Pricing Agreement applications by companies in both jurisdictions in an effort to enhance cross-border business processes and strengthen our commercial ties.

  • There is progress in sharing of financial information between the two countries under the Inter-Governmental Agreement pursuant to Foreign Account Tax Compliance Act (FATCA). The two sides will continue to engage in discussions on full reciprocal arrangement on FATCA and look forward to increased cooperation in sharing of cross-border tax-information.

  • Both countries are committed to continued collaboration and sharing of experience in tackling offshore tax evasion and avoidance, including joint tax audits and tax examination abroad.

  • India-US look forward to the Competent Authorities of the two countries engaging in bilateral dialogue to move forward cooperation in these areas.

  • Earlier this year, in India, the U.S.-India Financial Regulatory Dialogue brought together respective financial regulators of both countries to discuss a range of issues pertinent to our domestic financial sectors and to financial stability, including banking sector reform and development of capital markets.

  • Expert staff from Treasury and the Ministry of Finance are having consultations on the United States experience and international perspectives on the regulatory design for India’s recently launched payment banks.

  • Under the U.S.-India Investment Initiative launched in January 2015, both governments have worked in collaboration with private sector to identify specific policies, regulatory reforms, and technical collaboration aimed at mobilizing capital from both domestic and foreign investors to build infrastructure and create jobs.

  • The US is working to support India’s National Investment and Infrastructure Fund (NIIF) in order to increase financing options for India’s infrastructure growth.

  • The US looks forward for continuing discussions in areas such as municipal finance under the future work of the Initiative.

  • The next meeting of the Investment Initiative will be in the United States later in 2016.

  • Public debt management is an area of focus for India. India believes in continued efforts for more efficient debt and cash management, as well as the development of a deeper and more robust domestic debt market. It presents an opportunity for India’s Ministry of Finance and the U.S. Treasury’s Office of Technical Assistance to engage in knowledge and information sharing in India’s government debt management program. Accordingly, a Terms of Reference was signed between the two to collaborate on India’s government debt program.

  • Both countries have enhanced cooperation in tackling money laundering and combating the financing of terrorism through increased information sharing and cooperation, including a dialogue held recently in India. Both agree on the importance of fighting illicit finance in all forms as an important means of tackling global terrorism.

  • India and the US are committed to further deepen understanding of each other’s economies. As partners and peers, both are committed to work together to collaborate in multilateral fora, such as the G20, to steer economies toward stronger, sustainable, and balanced growth.

Both countries are satisfied with the developments that have taken place since the launch of the Economic and Financial Partnership and look forward to continued engagement in an effort to strengthen our relationship, our economies, and the global economy.


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