Economy

All eyes on US Treasury Secy Yellen’s tour to New Delhi as India Russia ties deepen

Amid deepening ties between India and Russia, US Treasury Secretary Janet Yellen’s four day tour to India—her first since she took charge is being closely monitored. As Yellen said that ‘like-minded countries’ must come together to boost economic and trade cooperation among each other, Beijing based Global Times said that given India’s economic potential, “it is not surprising that the US wants to deepen economic ties with the country.”

Though Yellen and Finance Minister Nirmala Sitharaman will hold the ninth meeting of India-US Economic Financial Partnership today, analysts said that the outcome of the visit will be scrutinised especially with a volatile geopolitical and geoeconomic situation.

The Narendra Modi government, notwithstanding rising pressure from the US and other western countries to condemn Russia in the wake of its Ukraine invasion, has continued to purchase oil from Moscow.

Sitharaman said India will continue to rely on the US to address the global economic challenges, in a more coordinated manner and in strengthening multilateralism.

The Wall Street Journal said that the US has shifted its approach to India since the invasion of Ukraine began, at first calling out its ties to Russia and warning the country against massively increasing its purchases of cheap Russian oil. “Now, the Biden administration is encouraging India to purchase Russian oil under a price determined by the U.S. and its allies, while more broadly tolerating the country’s relationship with Russia, analysts and administration officials say,” the report said.

“The focus isn’t who else India talks to, it’s how India interacts with the United States,” the news organisation quoted Jay Shambaugh, a counselor to Yellen as saying.

Meanwhile, Yellen said with concerns on supply chain, India and US should work together. She also said that the two countries share a common interest in strengthening the supply chains in a world “where certain governments wield trade as a geopolitical weapon.”

“For too long, countries around the world have been overly dependent on risky countries or a single source for critical inputs,” Yellen said. “For too long, countries around the world have been overly dependent on risky countries or a single source for critical inputs,” she added.

Also read: Why China’s Party Congress shows India has a five- year window to beef up its military deterrence

Mahua Venkatesh

Mahua Venkatesh specialises in covering economic trends related to India and the world along with developments in South Asia.

Recent Posts

VINBAX 2024: Vietnam-India bilateral army exercise concludes at Kaushalya Dam

The fifth edition of the historic Indo-Vietnam Joint Field Training Exercise, VINBAX-2024, successfully concluded its…

14 hours ago

India-Russia strengthen defence ties at 22nd Working Group meeting on military technical cooperation

The 22nd meeting of the India-Russia Working Group on Military technical cooperation and defence industry…

14 hours ago

“I want to have strong representation of India at World Nuclear Exhibition 2025”: Sylvie Bermann

Sylvie Bermann, President of the World Nuclear Exhibition expressed confidence in India's nuclear supply chain…

15 hours ago

PoJK: Joint Awami Action Committee protests against government following new ordinance, many injured

Joint Awami Action Committee core member Shaukat Nawaz Mir has condemned the attack of police…

16 hours ago

PM Modi meets 31 world leaders, heads of organisations during his 3-nation foreign visit

Prime Minister Narendra Modi participated in 31 Bilateral Meetings and informal interactions with global leaders…

18 hours ago

India- Australia conduct 11th Indian Air Force-Royal Australian Air Force Air Staff Talks

India and Australia conducted the 11th edition of the Indian Air Force and Royal Australian…

18 hours ago