October 13, 2013
Briefing the press today, Secretary, Department of Economic Affairs, Ministry of Finance, Government of India, Dr Arvind Mayaram informed that the fourth annual meeting of the U.S.-India Economic and Financial Partnership was held today. The meeting was chaired by the Finance Minister of India, Shri P Chidambaram and Mr Jacob Lew, Secretary, US Department of Treasury. The other officials who attended the meeting include U.S. Federal Reserve Board Chairman Ben Bernanke, Under Secretary Lael Brainard from US Treasury, Reserve Bank of India Governor Raghuram Rajan, Secretary Financial Services Rajiv Takru,
Ambassador Nirupama Rao and Securities Exchange Board of India Chairman UK Sinha. Dr Mayaram informed that the Joint Statement of the Partnership meeting incorporates the following key messages.
The economic and financial relationship between the two countries continues to deepen and strengthen. Despite a challenging global economy, U.S.-India bilateral trade in goods and services grew from $59.9 billion to $92.5 billion between 2009 and 2012. Indian foreign direct investment (FDI) in the United States increased from $227 million in 2002 to almost $5.2 billion in 2012, making India one of the fastest growing sources of investment into the United States. Total FDI inflows from the United States into India, from April 2000 to July 2013, are $11.492 billion.
In the meeting, the two leaders discussed recent economic and financial developments in the two economies, and in the world at large, including United States Fiscal Policy. The leaders appreciated that the Partnership has improved their mutual understanding of the challenges that both the economies face. They agreed that sound macroeconomic policies, structural reforms, and strong prudential frameworks will help them increase resiliency to financial market volatility and boost economic growth.
The leaders discussed the importance of investment for driving economic growth and job creation in the two economies and ways to improve the enabling environments to mobilize investment, especially for the financing of infrastructure. They noted that President Obama and Prime Minister Singh have reaffirmed their commitment to concluding a high-standard Bilateral Investment Treaty that will foster openness to investment, transparency, and predictability, and thereby support economic growth and job creation in both countries. The two Ministers will do their part to meet the Leaders’ call for increased engagement by experts from both governments, underlining the need for expeditious progress to address all trade and investment policy issues of bilateral concern so as to remove obstacles and improve the business environment in both countries.
The leaders agreed to deepen their cooperation bilaterally and in multilateral fora, including the G-20, to achieve reforms for stronger, more sustainable and more balanced growth. They also reaffirmed the importance of enhancing the credibility, legitimacy and effectiveness of the International Monetary Fund and the urgent need to ratify the 2010 IMF Quota and Governance Reform.
They agreed to continue working towards a greater understanding of all investment related issues including taxation and IT enabled services, an equitable and principled resolution of ongoing tax disputes,and strengthened bilateral ties in this regard.
The leaders agreed to continue to cooperate on deepening capital markets and strengthening financial regulation. They committed our financial sector experts to holding the next meeting of the Financial Regulatory Dialogue, which brings together our respective financial sector regulators, to consult on the full range of domestic and international regulatory concerns, in India in 2014.
The Leaders committed to deepening dialogue on implementation of international anti-money laundering / combating the financing of terrorism (AML/CFT) standards and expanding cooperation on countering illicit financing, including targeting the financial networks and fundraising activities of terrorist organizations, such as Lashkar-e-Tayyiba (LeT)/ Jamaat-ud Dawa (JuD) and the Haqqani Network, and individual terrorists associated with these organizations. They also agreed to enhance cooperation between our agencies in fighting against counterfeiting currency and illicit financial flows.
The next meeting of the Partnership in New Delhi in 2014.