| Fact Sheet Department of Treasury Washington, DC March 2, 2006 U.S.-India Economic Dialogue: U.S. - India Financial and Economic Forum
The Indian Ministry of Finance, the U.S. Treasury, and financial regulators from both countries have engaged in recent years under the auspices of the Financial and Economic Forum (FEF), part of the U.S.-India Economic Dialogue. This has provided an important venue to share views and expertise on macroeconomic and financial sector issues, including fiscal and exchange rate policies, measures to increase competition and strengthen prudential regulation in the banking sector and securities markets, insurance and pension reforms, and anti-money laundering efforts. Most recently, in November 2005, U.S. Treasury Secretary John Snow and Indian Finance Minister P. Chidambaram discussed India’s efforts to strengthen its financial system and expand financial services to the poor. The two sides also reaffirmed their intention to implement the recommendations of the Financial Action Task Force (FATF) designed to protect financial systems from money laundering, terrorist financing and other illicit financial threats. The Indian and U.S. sides agreed that a stronger investment climate would encourage more U.S. investment in Indian infrastructure development, and underscored the importance of an effective dispute resolution system to give greater confidence to investors. Looking forward, the development of the financial sector and trade in financial services will play a key role in promoting private-sector led growth and economic stability in India. Opening the financial sector to foreign participation would make additional long-term financing available for infrastructure development. The development of a greater array of insurance and savings products (including for retirement) would provide for greater income security and reduce the need for high precautionary savings. Future discussions by U.S. and Indian financial officials will draw significantly from the recommendations of the U.S. - India CEO Forum. Treasury intends to appoint a Financial Attaché in India to follow up on key initiatives and help deepen this important relationship.
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