Timothy Geithner hails India’s new reform drive to draw foreign investment

Tuesday, October 09, 2012
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. 
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