Growth in India is Good for the United States :Timothy Geithner
pankaj kumar | June 28, 2011 at 08:34 pmby
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US Treasury Secretary Timothy Geithner acknowledged that the US economy benefits from India's growth while not impeding India's economic objectives saying, "Growth in India is good for the United States, no threat to the United States."
Finance Minister of India Pranab Mukherjeee has assured the US investors that India is on a continuous reform path, that with recent "major steps" country is back on its high 8.5 % plus growth trajectory.
"That does not mean that we are returning to growth path without problems," he told a India-US business forum Monday with US Treasury Secretary Timothy Geithner ahead of the second round of Economic and Financial Partnership talks here Tuesday.
While India's growth story is largely domestically or consumption driven and the inflation pressures have been a "serious constraint which we shall have to tackle" to check the recent deceleration of growth, Mkherjeee said.
Other than high crude and commodity prices, it is supply side problems that have spiked inflation in India, he said suggesting that while 5 to 6 % inflation would be acceptable, he believed the Indian economy is capable to handle inflation up to 6.5 %.