Geithner is in New Delhi to launch a new bilateral economic dialogue with India with a focus on macroeconomic stability, financial markets and infrastructure financing
The United States and India must work together on rebalancing global growth and revamping a battered financial system, US Treasury Secretary Timothy Geithner said on Tuesday. The US and India need to work more closely together, Geithner said.
Geithner is in New Delhi to launch a new bilateral economic dialogue with India with a focus on macroeconomic stability, financial markets and infrastructure financing. He arrived in New Delhi along with Federal Reserve Vice Chairman Donald Kohn.
"Our ability to cooperate on economic and financial issues will be critically important to the success of global efforts to create conditions for a more stable global financial system, more balanced global economic growth, more effective and representative international financial institutions, and a more open global trading system," the US Treasury Secretary said.
On the prospects for the US economy, he said that while unemployment remains unacceptably high, the private sector has added jobs during four of the past five months, private investment is increasing, productivity growth is very high, the financial system is recovering, private savings have improved.
On India, Geithner said that it has a dynamic entrepreneurial private sector, a demonstrated ability to compete in the global market, and a commitment to quality higher education. "With those strengths and the proposed reforms, India's economic growth, already impressive, will be even stronger in the future," he added.
Geithner said that the US and India have some common problems, such as designing a private financial system that can finance future innovations and infrastructure needs, as well as extending financial services to more people who are outside the traditional banking system.
The US Treasury chief also approved India's demands for more representation for developing economies in the World Bank and IMF, saying they needed to be more effective and representative.
Geithner also pledged to work through the Group of 20 (G20) and other multilateral groups to achieve more flexible currency policies that can smooth out trade flows and reduce imbalances.
On Wednesday, he will travel to Mumbai to meet with Indian entrepreneurs and corporate head honchos.
Earlier today, Geithner met Prime Minister Dr. Manmohan Singh.
Geithner's two-day visit comes ahead of Dr. Singh's visit to the US from Sunday for a nuclear security summit. He also held discussions with Planning Commission Deputy Chairman Montek Singh Ahluwalia.
