Reforms will boost private investment in India: Geithner

Last Updated: Tue, Oct 09, 2012 15:10 hrs

New Delhi, Oct 9 (IANS) The economic reforms announced by the Indian government recently are "very significant" and would boost private investment and growth in the country, US Treasury Secretary Timothy Geithner said Tuesday.

"India has achieved remarkable economic achievement in the last 15 years... The reforms outlined by the government of India recently offer a very promising path to improving growth," Geithner said while addressing a joint press conference with Indian Finance Minister P. Chidambaram here.

The Manmohan Singh-led government recently announced a series of reform measures, including allowing foreign direct investments in multi-brand retail and cutting subsidies on petroleum products.

The federal cabinet has also approved the proposal to hike FDI limit in insurance sector.

Geithner, who is on a two-day official visit to India, said such measures would boost private investment and overall economic growth in India.

The two leaders addressed the media after the third meeting of Indo-US Economic and Financial Partnership.

Giethner said during the meeting India and US discussed the ways to lower trade and investment barriers.

"Both countries are committed to pursuing close cooperation," said Chidambaram.

Chidambaram said the crisis in Eurozone and US was affecting emerging economies like India.

"We have a deep interest in Eurozone crisis being resolved because it has affected our economy. The crisis is affecting all emerging markets, including India," he said.

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