India and the US have underscored the need for maintaining “supportive policies” until a strong and inclusive economic recovery is “firmly entrenched”.
Finance Minister Nirmala Sitharaman and US Treasury Secretary Janet Yellen acknowledged the devastation caused by the Covid-19 pandemic and sought to bolster bilateral co-operation, at the eighth India-USA Economic and Financial Partnership meeting, held in Washington on Thursday. It was also attended by US Federal Reserve chairman Jerome Powell and Reserve Bank of India Governor Shaktikanta Das, among others.
The joint statement comes amid mounting anxiety globally overpotential taper tantrum once the US Federal Reserve begins to scale back its $120-billion-a-month quantitative easing, with many analysts expecting it to be as early as in November.
In India, however, both the government and the central bank have hinted at an extended period of growth-supporting interventions. Sitharaman and Yellen also pledged to boost cooperation in stemming illicit finance, money laundering and terror-funding, and highlighted the need for effective implementation of the standards stipulated by the Financial Action Task Force (FATF).
During the meeting, both India and the US also agreed on further engagements on financial-sector issues, including cross-border payments, payment systems and the development of the International Financial Services Centre.
Separately, at the plenary meeting of the International Monetary and Financial Committee of the Board of Governors of the IMF, Sitharaman expressed concern over the stark differences in vaccination coverage of low-income and advanced countries and called for addressing vaccine inequity swiftly.