India and the US: Boosting Bilateral Cooperation

• 20 Jul 2023

Recently, India's Union Finance Minister announced that India and the US have agreed to work together on several critical issues, fostering bilateral cooperation.

Key Points:

• Focus Areas: The collaboration aims to strengthen multilateral development banks (MDBs), promote climate action, and facilitate the energy transition, with both nations jointly contributing to addressing global challenges.
• Consensus on Indebtedness of Low- and Middle-Income Countries: In addition to the key focus areas, India and the US will strive to facilitate a smoother consensus on the indebtedness of low- and middle-income countries, supporting financial stability and development.
• Embracing Crypto Assets and Digital Public Infrastructure: Both countries recognize the opportunities presented by crypto assets and digital public infrastructure for advancing financial inclusion, and they intend to harness these opportunities for the benefit of their economies.
• Global Tax Overhaul: India, the US, and around 140 other countries are currently engaged in negotiations to revamp global tax rules, ensuring multinational corporations (MNCs) pay taxes in the countries where they operate.
• Economic Ties and Supply Chain De-risking: The US is India's largest export market, and the two nations are engaged in talks to de-risk their supply chains from China under the Indo-Pacific Economic Framework for Prosperity (IPEF).
• Settlement of WTO Disputes: Recently, India and the US successfully resolved six of their disputes at the World Trade Organization (WTO), further enhancing trade relations.