Signalling the essence of their countries’ relations at a time of tension with China, U.S. Treasury Secretary Janet Yellen and Indian Finance Minister, Nirmala Sitharaman met on the sidelines of the G20 finance ministers’ meetings in the Gujarat capital, Gandhinagar on Monday, July 17, 2023.

In a joint press conference after their talks, Yellen noted that the U.S values its bilateral relationship with India, stating that her country and India are among the closest partners in the world. She added that the U.S appreciates India’s leadership during its G20 presidency.

Yellen stressed that the world is looking at the G20 to make progress on key challenges like climate change and pandemics.

“I am hopeful we can take significant concrete steps forward in our meetings. I appreciate India’s demonstrated leadership on debt issues as G20 President, including your support for G20 efforts to improve the multilateral debt restructuring process.”
Janet Yellen

Also, Yellen averred that the U.S is home to the largest Indian diaspora outside of Asia, and it serves as India’s largest export market.

“Bilateral trade between our two countries reached an all-time high last year, and we expect it to grow further in the years to come,” she said.

“Our collaboration spans a range of economic issues, including commercial and technological collaboration, strengthening supply chains, and catalysing the clean energy transition.”
Janet Yellen

According to Yellen, the U.S looks forward to working with India on an investment platform to deliver a lower cost of capital and increased private investment to speed India’s energy transition.

“I also appreciate India’s focus on finalising the historic two-pillar global tax deal in the inclusive framework, and I believe that we are close to reaching an agreement,” Yellen noted.

“We had a productive meeting in New Delhi last fall as part of the US-India Economic and Financial Partnership, or EFP, and I look forward to convening the 10th EFP meeting,” she iterated.

U.S-India Discussions Highlight Commitment To Bolster Partnership

On her part, Indian Finance Minister, Nirmala Sitharaman, noted that dialogues between her country and the U.S countries serve as an attestation to a mutual commitment to nurture a healthy partnership and harness the potential for progress and prosperity.

“Our discussions highlight the commitment of India and the United States to actively further the G20 agenda,” Sitharaman said.

Sitharaman cited Prime Minister Narendra Modi’s visit to the U.S last month, saying that Modi’s meeting with President Joe Biden has enhanced the “strength and dynamism of partnership between both the countries.”

“The historic visit paved the way for new avenues of collaboration, propelling our partnership to a greater height,” Sitharaman emphasized.

India is also interested in new investment opportunities through alternate investment platforms for renewable energy, the minister said.

“As we look ahead, we reaffirm our commitment to achieve substantial outcomes through close engagement by leveraging each other’s expertise and resources.

“Our partnership will create a prosperous and equitable future making it a catalyst for a positive change worldwide”
Nirmala Sitharaman

Moreover, Sitharaman divulged that a priority for the G20 and host India is strengthening global development banks and reaching a consensus on “intractable issues associated with rising indebtedness of low and middle-income countries.”

Yellen added that it was vital to “press for more ambition and specific reforms” with respect to global development banks.

Both leaders stressed the need to tackle debt issues facing low- and middle-income countries and to improve the multilateral debt restructuring process.