Yellen’s India Visit Focuses on Economic Challenges

U.S. Treasury Secretary Janet Yellen visited India for the third time in nine months to discuss global economic challenges with finance ministers from the Group of 20 nations. Yellen’s trip aimed to strengthen the U.S.-India relationship and address issues such as debt defaults in low-income countries. She also planned to stop in Vietnam to discuss supply chain reliability and clean energy transition.
During her visit, Yellen visited India & emphasized the importance of debt restructuring in developing countries facing economic distress. She advocated for modernizing global development banks to prioritize climate change. Yellen’s frequent visits to India underscore the significance of the U.S.-India relationship amidst tensions with China.
The ongoing conflict in Ukraine and Russia’s invasion have strained relationships between the U.S. and Russia. However, India, which maintains energy trade with Russia, has not participated in efforts to impose sanctions. Yellen stressed the importance of ending the war in Ukraine and pledged to continue cutting off Russia’s access to military equipment and technologies.
Yellen highlighted the growing reliance on India, both for supply chain resilience and as a favorable production and export destination for U.S. firms. She also discussed the impact of China’s slowing growth on other countries’ economies.
The visit comes after President Joe Biden’s state visit honoring Indian Prime Minister Narendra Modi in June, which aimed to strengthen ties and foster new business deals. Yellen’s trip to India after visiting China is seen as significant, as Indian officials seek to understand the discussions held with Chinese counterparts and explore potential economic collaborations.
Debt treatments for Ghana and Sri Lanka, both facing defaults, were expected to be discussed during the meetings. Over half of all low-income countries currently face debt distress, hindering their development.
Yellen’s visit to India followed her week-long trip to China, where she discussed trade restrictions and national security concerns. The growing alliance between India and the U.S. reflects tensions with China, border disputes, and India’s aspirations as an Indian Ocean naval power.
Re-reported from the article originally published in The Associated Press