India and U.S. Launched Historic Partnership to guide Economic Cooperation

Finance Minister Shri Pranab Mukherjee and U.S. Secretary of the Treasury Timothy F. Geithner launched the India-U.S. Financial and Economic Partnership to strengthen bilateral engagement and understanding on macroeconomic, financial sector and infrastructure-related issues, here today. The Partnership's launch affirmed the commitment of India and U.S. to cooperate on economic and financial issues - both critical in addressing shared challenges and achieving shared goals in this century.

"India and the United States are bound by common values of "democracy, market economies and pluralism", I am confident that this Partnership launch will unleash the energy and enterprise of people. It will make the relationship between two nations more vibrant and also help address global challenges", stated the Finance Minister Shri Mukherjee.

"This Partnership creates a framework that is commensurate with the growing importance of our economic relationship and the significant business and cultural ties that already exist between our two nations. Deepening our ties with India is critical to the broader global effort to develop a framework for a strong, sustainable and balanced growth and will facilitate more trade, investment and job creation in our two countries", said Secretary Geithner.

The newly-launched dialogue will encompass discussions of economic developments in both countries as well as bilateral policy actions in the broader context of the G-20 commitment to strong, sustainable and balanced growth. The ministers agreed that they, and their senior officials, will continue to consult closely on topics of mutual interest and concern.

Given the significant infrastructure needs in the years ahead, the Partnership will also serve as a forum to share experiences and engage in a robust and ongoing dialogue on infrastructure financing, including the potential of private-public partnerships to unlock private sector financing for critical investment.

The Partnership will meet next at the Cabinet level in the United States, led by Secretary Geithner and Minister Mukherjee. Working group meetings, at the level of senior officials and experts, will be held during the year to advance discussions on specific economic policy areas. At the inaugural Partnership session, working group discussions focused on macroeconomic policies needed to sustain growth in incomes and jobs; measures to reform financial regulation, deepen capital markets as a means to improve growth and increasing financing for infrastructure investment critical to future productivity and economic growth.

Following is the Joint Statement issued by the Finance Minister Shri Mukherjee and Secretary Geithner at the launch of India - U.S. Financial and Economic Partnership:

"Today, Indian Finance Minister Pranab Mukherjee and U.S. Secretary of the Treasury Timothy Geithner launched the India - U.S. Financial and Economic Partnership, cementing the economic bonds between our two nations, and building a foundation for greater cooperation and economic growth in the future.

The ability and commitment of the U.S. and India to cooperate on Financial and Economic issues are important to the economic success of both nations, and the world, and will assist in addressing shared challenges and achieving shared goals in this century.

The Partnership between the Ministry of Finance, Government of India, and the U.S. Department of the Treasury intends to focus on three broad areas - macroeconomic policy, financial sector reforms, and infrastructure financing - and expects to meet at the Cabinet level once a year, alternating between the United States and India, led by Secretary Geithner and Minister Mukherjee. Working group and sub-cabinet level meetings are to be held during the year to advance discussions on specific economic policy areas.

Economic growth and stability are at the core of our engagement. India and the United States have a mutual interest in a strong recovery from the financial crisis and preventing the recurrence of similar crises in the future. Our dialogue is designed to encompass discussions of economic challenges in our two countries, as well as in the broader context of the G-20 commitment to strong, sustainable, and balanced growth.

Our expanded partnership will build on our existing dialogue on regulatory issues, and serve as a vehicle to discuss strategies to promote in both countries financial sector reforms, deepen capital markets, including more liquid debt markets, and increase financing for investments.

India and the United States have significant infrastructure needs. We aim to share experiences and intend a robust and ongoing dialogue on the potential for private-public partnerships to unlock financing for critical infrastructure investment."