US-India relationship critical, says Janet Yellen in meet with Sitharaman

US Treasury Secretary Janet Yellen on Tuesday said that the India-America relationship is critical to address the world's global economic challenges.

After her bilateral meeting with Finance Minister Nirmala Sitharaman on Tuesday evening, Secretary Janet Yellen announced that she would travel to India next month to attend the ninth edition of the US-India Economic and Financial Partnership.

"Finance Minister Sitharaman, I am pleased to welcome you back to the Treasury Department today. The US-India relationship is critical to addressing the world's most important global economic challenges. I am glad to announce today that in November ahead of the G20 meetings, I will take my first trip to India as Treasury Secretary, to attend the US-India Economic and Financial Partnership, our ninth Partnership meeting," Yellen said as quoted by the statement released by US Department of the Treasury.

Underlining the importance of the economic ties between the two countries, the US Treasury Secretary said "This partnership is not only vital to our core economic interests, but it also demonstrates to our citizens and the world that democracies deliver."

"It illustrates the close bonds between our two countries, from the Quad partnership to our strong bilateral economic relationship, and the cultural ties from the Indian diaspora in the US," Yellen said.

The US Secretary said, "The United States and India are both extremely important to the world economy, and we must continue to work together on the economic development and cooperation that has made our partnership so strong."

Yellen said that both India and the US faced headwinds from COVID-19 and Russia's "unjust" war against Ukraine. "Those global shocks have raised energy and food prices in both of our countries, and they've underscored the importance of the efforts both of our countries are undertaking to make our economies more resilient," Secretary Yellen said.

The US Secretary said that she looked forward to discussing how both countries would strengthen supply chains and invest in clean energy in addition to steps that America is taking to keep global oil markets well-supplied in the near term.

"That is particularly important given how high energy costs have affected consumers in both of our countries - and in emerging markets globally," she said.

"India's assumption of the G20 presidency in December is also an opportunity for more concerted global cooperation. I look forward to discussing India's priorities for their host year and how the United States can best support you as you take on this important role," the US Secretary said according to the statement.

The US Treasury Secretary further added that the US is pleased that India is joining the Indo-Pacific Economic Framework. Through the Framework, the United States and its partners will deepen our economic bonds, strengthen our supply chains to avoid costly disruptions, and help develop the guiding standards and rules for technological innovation in the years and decades to come, she said as per the statement.

Sitharaman is on an official visit to the United States. During her visit, she will be attending the Annual Meetings of the International Monetary Fund (IMF) and the World Bank, the G20 Finance Ministers and Central Bank Governor (FMCBG) Meetings.

Besides her meeting with Yellen, the finance minister will also participate in bilateral meetings with several countries, including Japan, South Korea, Iran, Saudi Arabia, Australia, New Zealand and Germany.

Before meeting Yellen, Sitharaman interacted with leading scholars of a Washington-based think tank on various issues relating to the global economy and development. She spoke on "India's Economic Prospects and Role in the World Economy."

This high-level visit to the US and a series of meeting with ministers of top economies of the world come ahead of India's G20 presidency next year.During her interaction with the Washington-based think tank, Sitharaman noted the unique role that the G20 grouping plays on the world stage.

"G20 has a great potential to work towards global good and global when I say public good, will also have to be made far more strengthened," the minister said.

She said there are some of the areas in which India wants the G20 to work together. "We love to work together with them and get some good outcomes," she added.