India and the United States have recently agreed to enhance cooperation on various fronts, including strengthening multilateral development banks, promoting climate action, and facilitating energy transition. The Union Finance Minister, Nirmala Sitharaman, met with US Treasury Secretary, Janet Yellen, during a G20 event to discuss their bilateral interests and explore new investment opportunities in renewable energy. The collaboration between the two nations spans economic, commercial, and technological issues, with a focus on supply chain strengthening and catalyzing clean energy transition.
Key Collaborative Efforts
- Promotion of Climate Action: India and the US have pledged to work together in promoting climate action and facilitating the clean energy transition. An investment platform is being considered to deliver a lower cost of capital and increase private investment to expedite India’s energy transition.
- Strengthening Multilateral Development Banks (MDBs): India’s leadership in advancing the evolution of MDBs is appreciated by the US. The two countries are actively engaged in improving the multilateral debt restructuring process as part of the G20 efforts.
- Global Tax Deal: India and the US are close to reaching an agreement on the two-pillar global tax deal. This mechanism involves increasing the authority of nations to tax multinational corporations and implementing a global minimum tax on these corporations.
- World Trade Organization (WTO) Disputes: India and the US have settled six of their WTO disputes, fostering better trade relations between the two nations.
- Indo-Pacific Economic Framework for Prosperity (IPEF): India and the US are in talks to de-risk their supply chains from China under the IPEF, enhancing economic ties and resilience.
Prosperous and Equitable Future
The collaboration between India and the US is seen as a catalyst for positive change worldwide. The partnership aims to create a prosperous and equitable future by leveraging each other’s expertise and resources. The focus on economic growth, innovation, and sustainable development underscores the commitment of both nations to drive positive transformation in various sectors.