(Image source from: economictimes.indiatimes.com)
Steven Mnuchin, US Treasury Secretary sought out further relaxation in the FDI rules of India to help propel the American companies to further continue with their investment in the country for promoting better economic growth. This is also targeted to help achieve the USD 5 trillion economy that they nations have planned out.
Following the 7th India-US Economic and Financial Partnership meeting, Mnuchin said that the countries are working as allies to promote better economic growth and improve the economic security of both the nations involved.
Further quoting him he stated saying, “I look forward to the government's goal of USD 5 trillion. And I think that they're going to hit that goal, even faster than they expect with what are great economic opportunities as they promote growth.”
Prime Minister Narendra Modi does have a set goal of achieving USD 5 trillion economy by the year of 2024-25. Addressing such, Mnuchin said that US is welcoming the bilateral foreign direct investments of both the nations between both the countries.
He further clarified stating, “We look forward to the opening up of certain markets where US companies can continue to invest here. We discussed the importance of paying greater attention to transparency and debt sustainability and development lending in Asia and beyond.”
Speaking about the meeting happening, the Finance Minister of India, Nirmala Sitharaman said that the US-India ties are at its peak since decades following the visit made by Prime Minister Modi to the United States in September this year.
She addressed the situation saying, “India and the US, as the world's largest democracies have shared an interest in each other's economic prosperity and in ensuring economic security.”
Sitharaman believes that the Indian stocks of the efforts is meant to further improve the mutual corporation on varying prospects of the bilateral and multinational subjects to further raise the growth and improve the financial market development for the better.
Further withholding the context, Sitharaman shared her opinion stating, “We not only discussed policies to stimulate growth but also deliberated on significant steps, India and the US have taken to strengthen the financial sector, including banks recapitalisation and plan to merge some of the state-owned banks. We discuss capital flows investment in infrastructure, closer people to people ties and as also cooperation in the overall global economic context.”
There have been rising disputes between India and US over the Iran ties but the finance minister has clarified stating that they have already explained the need for the land access to Afghanistan with accordance to the Chabahar link.
Further addressing the issues involved, Mnuchin did explain that US has been consistently working with the allies to ensure the maximum supply of the oil and such trades between the countries in question.
He concluded saying, “I just came from the Middle East, was in Saudi Arabia where I met with the energy minister and others. And they and others have done a very good job so that it doesn't have an economic impact. We are sensitive to the fact that India has tremendous energy needs. We look forward to working with India on LNG and expanding capabilities.”
-Somapika Dutta
