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3/19/2020

Joint Statement on the India – U.S. Economic and Financial Partnership | U.S. Department of the Treasury

Joint Statement on the India – U.S. Economic and Financial
Partnership
November 1, 2019

Indian Finance Minister Nirmala Sitharaman and U.S. Secretary of the Treasury Steven Mnuchin
met in New Delhi to continue the India – U.S. Economic and Financial Partnership, a dialogue
meant to deepen the economic partnership between the two countries and advance work in a
number of areas to support economic growth and security. Following the conclusion of the
dialogue, Indian Finance Minister Sitharaman and Treasury Secretary Mnuchin signed the
following joint statement:
NEW DELHI – The Seventh Meeting of the Economic and Financial Partnership (EFP) was held in
New Delhi on 1st November, 2019, between the Ministry of Finance of the Republic of India and
the Department of the Treasury of the United States of America.
The Indian delegation was led by Smt. Nirmala Sitharaman, Minister of Finance, Government of
India and the U.S. delegation was led by Mr. Steven Mnuchin, U.S. Secretary of the Treasury.
The Seventh Meeting of the India – U.S. Economic and Financial Partnership is meant to deepen
the economic partnership between the two countries as a framework, commensurate with the
growing importance of our economic relations and significant business and cultural ties that
already exist between the two nations, and to undertake further work in a number of areas to
improve cooperation and support for economic development. During this meeting of the EFP,
both sides had in-depth exchanges of views on a range of issues such as the global, US, and
Indian economic outlooks, global debt sustainability, financial sector reforms, leveraging of
capital flows and investment, and tackling money laundering and combating the financing of
terrorism (AML/CFT).
India and the United States discussed policies to stimulate economic growth and noted the
significant steps India has taken to strengthen the financial sector, including Public Sector Bank
recapitalization and plans to merge some of the state-owned banks. Both sides also discussed
capital flows, investment promotion related issues, and the external economic environment.

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Joint Statement on the India – U.S. Economic and Financial Partnership | U.S. Department of the Treasury

Both sides are committed to greater economic cooperation on global economic issues, both
bilaterally and multilaterally in the G20 and other fora. India and the United States look forward
to enhanced collaboration to address the challenges to global growth under the G20 Presidency
of Saudi Arabia. As India gears up for the 2022 Presidency of the G20, the United States stands
ready to support India in hosting a successful and focused Presidency.
Our respective financial regulatory authorities have also recently discussed financial regulatory
developments in the Financial Regulatory Dialogue. The United States and India recently signed
a Memorandum of Understanding for cooperation, coordination, consultation and exchange of
information relating to the Regulation of the Insurance Sector. Both sides look forward to the
ongoing discussion on issues related to data localization.
The United States and India recognize the importance of foreign portfolio investors for
supporting economic growth, and discussed ways to build on India’s positive steps in further
opening to greater foreign portfolio investment. Both sides welcome the growing bilateral
foreign direct investment between our countries and underscore the importance of India taking
steps to improve its investment climate for all types of investors. These investments will help to
boost growth for both countries.
Both sides are working together to attract more private sector capital to finance India’s
infrastructure needs and further raise growth for both countries. India has set up the National
Infrastructure and Investment Fund (NIIF) to catalyze private institutional investment in Indian
infrastructure, for which the United States has provided technical support. The United States
helped the Indian city of Pune successfully launch municipal bonds in 2017 to finance local
infrastructure needs to support the government’s Smart Cities initiative. India and the United
States look forward to working together for preparing more cities to issue municipal bonds,
including technical assistance, and to having a more broad-based relationship with respect to
institutional investment into infrastructure in India.
Both sides took note of the importance of having greater attention to transparency and debt
sustainability in bilateral development lending. India and the United States both support global
e orts to improve debt sustainability and transparency, including through the international
financial institutions’ multipronged approach and the e orts of the G20 and other groups. In
2019, India has voluntarily associated with the Paris Club to cooperate in its work, as an
observer.
Both sides appreciated the recent signing of an arrangement that enables automatic exchange
of Country-by Country Reports for purposes of high level transfer pricing risk assessment. Both
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Joint Statement on the India – U.S. Economic and Financial Partnership | U.S. Department of the Treasury

sides also noted the significant progress in recent years to resolve bilateral tax disputes between
the two countries, and applaud ongoing e orts to prevent tax disputes and provide certainty to
taxpayers through the existing Mutual Agreement Procedure and bilateral Advance Pricing
Agreement relationship.
India and the United States took note of the progress made in sharing financial account
information between the two countries under the Inter-Governmental Agreement pursuant to
the Foreign Account Tax Compliance Act (FATCA), and encourage both sides to work together to
further improve the quality and usability of data for mutual benefit. Both sides will continue to
collaborate and share experiences for tackling o shore tax evasion.
India and the United States will continue to enhance our cooperation in tackling money
laundering and combating the financing of terrorism (AML/CFT). Our relationship has
strengthened over time as both sides have developed a holistic approach to our bilateral
engagement on AML/CFT issues of shared concern. Our cooperation includes but is not limited
to, information exchanges to combat global terrorist financing and to support the designation of
specific terrorist facilitators and financiers, coordinating on AML/CFT and maintaining the
integrity of the Financial Acton Task Force (FATF) global standards for AML/CFT. India has
demonstrated its support for action against non-compliant countries. In addition, India and the
United States continue to work on developing AML/CFT frameworks to mitigate the associated
illicit finance risks.
Both sides are encouraged with the developments that have taken place since the last meeting
of the Economic and Financial Partnership and look forward to continued engagement to
strengthen our bilateral relationship, our economies and our economic security.

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