Tim Geithner lauds India’s handling of financial crisis

Infrastructure opportunity in India is worth $600 billion over the next five years, finance minister Pranab Mukherjee told the media after his meeting with visiting US Treasury Secretary, Timothy F Geithner.

Although infrastructure, including ports, roads and communications, has been identified as an area of “immense possibilities”, Geithner did not cite any investment figure the US had in mind for the sector in India.

“India and the US have significant infrastructure needs. We aim to share experiences and intend a robust and ongoing dialogue on the potential for private-public partnerships to unlock financing for critical infrastructure investment,” a joint statement after the Mukherjee-Geithner meeting said.

Mukherjee and Geithner also launched the US-India Economic and Financial Partnership, aimed at greater economic cooperation between the two countries.

While pointing out that the unemployment level was still high in the US, Geithner said that the world (and the US) was coming out of recession. “Private sector investment is increasing, productivity growth is very high, financial system is recovering, private savings have improved, and our economy is now borrowing significantly less from the rest of the world.”

For India, he said, the country navigated the crisis with a steady hand.

Geithner’s itinerary was packed, including a meeting with Prime Minister Manmohan Singh, Mukherjee and a meeting with Planning Commission deputy Montek Singh Ahluwalia at a CII function.

The India-US Partnership would focus on macro-economic policy, financial sector reforms, and infrastructure financing. While the two sides are expected to meet at the Cabinet level once a year, sub-Cabinet level meetings would be held through the year on the partnership areas.

Geithner’s two-day visit comes ahead of Prime Minister Manmohan Singh’s trip to the US beginning Sunday for a nuclear security summit.