Nov 12, 2022: US-India Trade and Investment Opportunities Program
At the US-India Trade and Investment Opportunities Program, US Finance Secretary Janet Yellen said on Friday that India is an important partner for America. She also said that the US is eager to support India’s presidency in the G20 to achieve shared global priorities. In the same program, Finance Minister Nirmala Sitharaman said that India has emerged as one of the fastest growing economies in the world. She said that India has recently overtaken Britain to become the fifth largest economy and is expected to be among the top three economic powers in the next 10 to 15 years.
Relations between India and America are strong. The US is India’s largest trading partner and bilateral trade between the two countries has reached an all-time high of $150 billion in 2021. On an official visit to India, according to Yellen, as US President Joe Biden said earlier this year, India is an important US partner. “It’s especially true today,” she said. I believe the immediate challenges are bringing India and the United States closer than ever before.” ‘Friendshoring’ means promoting trade between countries with similar values and institutions.
The US is believed to be taking this initiative to reduce China’s role in manufacturing. Yellen said during an event at Microsoft Inc’s plant near Delhi that the US-India are natural allies, and the two countries can show the rest of the world that democracy can work well for its citizens despite instability and war. “For a long time, countries around the world have relied heavily on risky countries or single sources for critical goods,” she said, adding, “We actively strengthen economic integration with trusted trading partners such as India. Introducing the concept of ‘friendshoring’, the US Treasury said both countries aspire to strengthen their supply chains in a world where some governments are using it as a geopolitical weapon.
She said the recent disruptions have pushed up prices in both countries and affected economic output. She said this without directly mentioning the rise in energy and commodity prices after Russia’s attack on Ukraine. Yellen said the US is distancing itself from countries that pose geopolitical and security risks to our supply chain. Countries like the US cannot make everything on their own and hence the emphasis is now on favoring strategic allies while building supply chains. Yellen also spoke of US company First Solar Inc’s plans to build a manufacturing plant in Tamil Nadu and Apple Inc.’s plans to move some of its iPhone manufacturing from China to India.
“Equal value relations are not limited to a particular club of countries. We want to connect with the largest group of countries we can trust. It will involve developing countries and advanced economies alike.” Yellen said, “The US will continue to strengthen its trade and commercial ties with India.” There are signs that Western companies are diversifying their supply chains beyond China. India wants to become an important part of supply chains, extending through the democratic world.
—by Team DiGiNews360