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| Indian Finance Minister P. Chidambaram (left) and U.S. Treasury Secretary Timothy Geithner (right), [gfx ©news.BDTV.in] |
New Delhi: U.S. Treasury Secretary Timothy Geithner on
Tuesday welcomed recent steps taken by the Indian government to allow foreign
investment in the multi-brand retails, in a bid to end a year-long policy paralysis
in New Delhi and said India new drive to economic reforms will boost private
sector investment and income.
Timothy Geithner on Tuesday met Indian
Finance Minister P. Chidambaram in New Delhi to discuss ways to improve
economic ties between U.S. and India.
“The recent reforms advanced by Prime
Minister (Manmohan) Singh and finance minister Chidambaram will help provide a
foundation for stronger economic growth, an increase in investment, and more
widespread gains in income,” Geithner
told addressing a press conference in New Delhi following talks with his Indian
counterpart, P.Chidambaram.
The measures
"will help provide stronger economic growth and stronger growth in private
sector", he added.
Geithner, who is
accompanied by Federal Reserve chairman Ben Bernanke, said his visit to India
was to demonstrate his commitment to a "very promising economic relationship."
Chidambaram said, India was “deeply locked into the global economy”, and reforms were
needed for the economic growth as India’s
infrastructure and investment needs, and improving coordination on bilateral
tax matters.
India’s economic
growth has slowed to its lowest in nearly three years and earlier on Tuesday
the International Monetary Fund (IMF) sharply cut its projection for GDP growth
to 4.9% in 2012, one of the lowest official forecasts so far.
Foreign direct
investment (FDI) into India has fallen 67% since the start of the 2012/13
fiscal year in April after a record high the previous year.
Notably, the meeting came after the Indian
government decision to allow foreign investment in India and an attempt to improve
the business climate and reignite the nation’s declining economic growth.