India, US among closest partners: Janet Yellen at G20 FMCBG meet

Gandhinagar: United States Secretary of the Treasury Janet Yellen on Monday said the US and India are among the closest partners in the world and her country appreciates India's leadership during its G20 presidency.

She said bilateral trade between the two countries reached an all-time high last year and they expect it to grow further in the years to come.

Yellen and Union Finance Minister Nirmala Sitharaman jointly addressed the media here ahead of the India-US dialogue as part of the G20 meetings currently underway in Gujarat capital Gandhinagar.

Sitharaman said Prime Minister Narendra Modi's visit to the US last month and his meeting with the US president have enhanced the strength and dynamism of partnership between the two countries.

Yellen in a statement said, "We highly value our bilateral relationship with India. The US and India are among the closest partners in the world. The US appreciates India's leadership during its G20 presidency, and we will continue our close cooperation." The world is looking at the G20 to make progress on key challenges like climate change and pandemics, she said.

"I am hopeful we can take significant concrete steps forward in our meetings. I appreciate India's demonstrated leadership on debt issues as G20 president, including your support for G20 efforts to improve the multilateral debt restructuring process," she said.

Yellen also welcomed India's focus on advancing the evolution of multilateral development banks, or MDBs.

"It is vital that we use meetings like this to strengthen our coalition of shareholders that are working together to press for more ambition and specific reforms with respect to the MDBs' vision, incentive structures, operational approaches, and financial capacity to better address global challenges," she said.

As per an estimate, MDBs could unlock USD 200 billion over the next decade just from the measures already being implemented or under deliberation as part of this process, she said.

"We are also proud to have supported Ajay Banga's candidacy to lead the World Bank. We believe that he is providing the right leadership to deliver on these critical reforms," Yellen said.

It is also important to address the immediate need to boost the Bank's concessional lending capacity for global challenges and support low-income countries to supplement ongoing efforts. Indian partnership in this effort will be a key to its success, she said.

"Beyond our cooperation at the G20, we highly value our bilateral relationship with India," she said.

"As illustrated by Prime Minister Modi's recent State Visit to Washington, the United States and India are among the closest partners in the world. And I've been proud to help lead our work on that relationship," Yellen said.

She said the US is home to the largest Indian diaspora outside of Asia, and it serves as India's largest export market.

"Bilateral trade between our two countries reached an all-time high last year, and we expect it to grow further in the years to come," she said.

"Our collaboration spans a range of economic issues, including commercial and technological collaboration, strengthening supply chains, and catalysing the clean energy transition," she said.

In particular, the US looks forward to working with India on an investment platform to deliver a lower cost of capital and increased private investment to speed India's energy transition, she said.

"I also appreciate India's focus on finalising the historic two-pillar global tax deal in the inclusive framework, and I believe that we are close to reaching an agreement," she said.

"We had a productive meeting in New Delhi last fall as part of the US-India Economic and Financial Partnership, or EFP, and I look forward to convening the 10th EFP meeting," Yellen said.

On the occasion, Sitharaman said PM Narendra Modi's visit to the US last month and his meeting with the US president have enhanced the "strength and dynamism of partnership between both the countries." "The historic visit paved the way for new avenues of collaboration, propelling our partnership to a greater height," Sitharaman said in her statement.

She said exchanges between both the countries serve as a testament to a mutual commitment to nurture a robust partnership and harness the potential for progress and prosperity.

"Our discussions highlight the commitment of India and the United States to actively further the G20 agenda, and this includes addressing critical global issues such as strengthening the multilateral development banks and taking coordinated climate action and harnessing opportunities presented by Crypto assets and digital public infrastructure for financial inclusion," she said.

India is also interested in new investment opportunities through alternate investment platforms for renewable energy, the minister said.

"As we look ahead, we reaffirm our commitment to achieve substantial outcomes through close engagement by leveraging each other's expertise and resources," she said.

"Our partnership will create a prosperous and equitable future making it a catalyst for a positive change worldwide," Sitharaman said.