8th Ministerial Meeting of India-U.S Economic & Financial Partnership Dialogue

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• The eighth ministerial meeting of the India-U.S.A. Economic and Financial Partnership Dialogue was recently held at Washington D.C.
  • The meeting was chaired by India’s Union Minister for Finance & Corporate Affairs and the Secretary of the Treasury of the United States.

History of Indo-US Economic and Financial Partnership Dialogue

• The US Treasury and India’s Ministry of Finance launched the Indo- US Economic and Financial Partnership Dialogue in 2010.
  • It was launched as a framework with the following aims:
    • To cement the economic bonds between our two nations and 
    • To build a foundation for greater cooperation and economic growth in the future. 

Key Highlights of the Meeting

• During the ministerial meeting of the India-U.S.A. Economic & Financial Partnership, discussions were held on a range of subjects.
• The discussions included 
  • The macroeconomic outlook and recovery from the COVID-19 pandemic:
    • Successful collaboration on attracting more private sector capital to finance India’s infrastructure needs will support growth in both countries.
    • The US continues to provide technical support to India’s National Infrastructure and Investment Fund (NIIF).
    • India and the US also look forward to working together to prepare more cities to issue municipal bonds.
  • Financial regulatory and technical collaboration:
    • The United States and India look forward to discussions on emerging financial sector topics, such as 
      • cross-border payments and payment systems and 
      • the development of the International Financial Services Centre at GIFT City.
  • Multilateral engagement:
    • As India prepares for its 2023 G20 Presidency, the US stands ready to support India in hosting a successful and productive year.
    • Both sides affirmed their commitment to debt sustainability and transparency in bilateral lending.
    • Both discussed the importance of working through multilateral development banks to help India access and mobilize available financing to support development objectives, including for climate. 
    • Both welcomed the OECD/G20 Inclusive Framework political agreement.
      • It represents a significant accomplishment for updating the international tax architecture.
      • It establishes an international tax system that is more stable, fairer, and fit for purpose for the 21st century.
    • Both reviewed the progress made in sharing financial account information for tackling offshore tax evasion.
      • It is governed by the Inter-Governmental Agreement pursuant to the ForeignAccount Tax Compliance Act (FATCA).
  • Climate finance:
    • The US reiterated the collective developed country goal to mobilize $100 billion annually for developing countries from public and private sources.
      • It will be used for meaningful mitigation actions and transparency on implementation.
    • Both emphasised on the Finance Mobilization for the recently launched Climate Action and Finance Mobilization Dialogue (CAFMD).
      • It is under the U.S.-India Climate and Clean Energy Agenda 2030 Partnership.
  • Anti-money laundering and combating the financing of terrorism (AML/CFT):
    • Both will  increase information sharing and coordination for combating money laundering and terror financing.
    • Both sides agree on the importance of 
      • fighting financial crimes and 
      • on the effective implementation of the Financial Action Task Force standards to protect our financial systems from abuse.
• Both sides affirmed their commitments to continue collaboration both at bilateral and multilateral fora.
  • They will jointly address mutual and global economic issues and strive towards amicable strategies and solutions.

Source: PIB, NewsOnAir