The Hindu Business Line : Infrastructure: India, US to create stronger investment climate

Mr John Snow, US Treasury Secretary, calling on Mr Montek Singh Ahluwalia, Planning Commission Deputy Chairman, in the Capital on Wednesday. — Ramesh Sharma

New Delhi , Nov 9

INDIA and the United States today agreed to create a stronger investment climate to attract US private sector companies to invest in the Indian infrastructure sector. The agreement was reached at the third meeting of the India-US Financial and Economic Forum here today.

"The Indian and US sides agreed that a stronger investment climate would encourage more US private sector firms to invest in Indian infrastructure development," a joint statement issued after the conclusion of the meeting said.

The meeting was co-chaired by the US Treasury Secretary, Mr John Snow, and the Indian Finance Minister, Mr P. Chidambaram. Senior government officials from both countries attended the meeting.

During the meeting, Secretary, Department of Economic Affairs, Mr Ashok Jha, and the US Ambassador, Mr David Mulford, signed a cooperation framework to facilitate US Trade and Development Projects in India.

Both the sides expressed concern that rising oil prices and the tightening financial market conditions could adversely impact global growth prospects, which in turn could affect the economies of both countries.

While pointing out that growth prospects at present appeared favourable, the statement said there were "several potential risks, including the impact of energy process, the tightening of the financial market conditions and uneven growth in parts of the world."

Addressing a press conference after the meeting, Mr Snow said both sides had expressed their "commitment to growth and good economic policies." He said the talks touched upon several areas including issues related to the capital markets, pension reforms, insurance policies and the "prospects of the deepening Indian bond market."

Terming the meeting as "a very rewarding experience", Mr Chidambaram said the two sides had discussed the possibility of signing a memorandum of understanding on some areas ahead of the proposed visit of the US President, Mr George Bush early next year. He said one such agreement could be on increased dialogue between the commodities regulators of the two countries.

The talks also focussed on the possibility of strengthening the Indian financial sector and lowering the cost of intermediation to provide access to cheaper finance for agriculture, small businesses and the poor people.

The two sides also agreed to continue technical cooperation in the area of currency security, including detection and enforcement. "Prevention of counterfeiting of national currencies is part of the fight against financial crimes and important to maintaining the integrity of the financial system," the joint statement said.

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