India’s recent reform measures are “very significant” and will fuel private investment in the economy, US TreasurySecretary Timothy Geithner said during a visit to New Delhi on Tuesday.
India has announced a series of measures, including raising the price of subsidised fuel and opening the retail sector to foreign supermarkets, to revive economic growth, which has slowed to a near three-year low. He also tried to address India’s concerns over visa to IT professionals. We expect significant increase in visas, he said after the meeting.
“The reforms outlined by the government of India offer a very promising path to improving growth outcomes for the Indian economy,” Geithner said at a joint news conference with IndianFinance Minister P. Chidambaram. Giethner added that he and Chidambaram discussed ways to lower trade barriers between India and US. “Both India & US affected by EU’s debt crisis and Asia’s slowdown,” he said. US economy faces a lot of fiscal challenges, he said, adding that US has a very strategic partnership with India.
Reforms by government of India are very promising and have been welcomed around the world, Geithner said, referring to India’s decision to open foreign direct investment in multi-brand retail and allowing foreign carriers to invest in India’s airlines. Chidambaram said he had raise concerns that the third round of quantitative easing by the US could raise commodity prices, but admitted that some of the money could come to India as well. Commodity prices have not risen that much so it is too early to talk about its impact. If QE3 improves US economy, it will also be good for India, Chidambaram said.