India today invited the US to participate in its $600 billion infrastructure development programme over the next five years, as the two countries launched financial and economic partnership to scale up bilateral ties.
"Immense opportunities are there for investment in the infrastructure sector. As much as $600 billion can be invested in port, communications, road... In the next five years," Finance Minister Pranab Mukherjee said at a joint press conference with visiting US Treasury Secretary Timothy Geithner.
At the meeting of the full Planning Commission last month, Prime Minister Manmohan Singh had pegged India's infrastructure funding needs at $1 trillion between 2012 and 2017.
Giethner, who met Singh in the morning, in turn sought greater financial cooperation with India to bring about global economic stability.
"Deepening our ties with India is critical to the broader global effort to develop a framework for strong... And balanced growth and will facilitate more trade, investment and job creation in our two countries," said Geithner, who is on his maiden visit to India as US Treasury Secretary although he has spent some years in the country in his childhood.
The India-US Financial and Economic Partnership would help strengthen bilateral engagement and understanding on macro-economic financial sector and infrastructure related issues.
The US has separately been demanding greater access to the Indian financial services market, including insurance -- which could be used to fund infrastructure. At present, foreign direct investment in the insurance sector is capped at 26 per cent.
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The two ministers discussed how to finance substantial infrastructure needs leveraging private investor.
The India-US Financial and Economic Partnership, launched today, would serve "as a forum to share experiences and engage in a robust and ongoing dialogue on infrastructure financing including the potential of private-public partnership to unlock private sector financing for critical investment", a joint release said.
Geithner said President Barack Obama and Prime Minister Singh had recognised that as two of the world's largest economies, they need to work more closely together.
Geithner's two-day visit starting today comes ahead of Manmohan Singh's visit to the US from Sunday for a nuclear security summit. Singh is likely to meet US President Barack Obama, who had earlier described India as an "indispensable partner in securing the future prosperity and security of the world".