U.S. Treasury Secretary Janet Yellen has returned to India for the third time in nine months, following her visit to Beijing. Her purpose is to meet with finance ministers from the Group of 20 nations to address global economic challenges, particularly the increasing threat of debt defaults faced by low-income countries. Yellen aims to strengthen the relationship between the United States and India, while also addressing supply chain reliability and clean energy transition during her stop in Hanoi, Vietnam.
During her time in India, Yellen intends to advocate for debt restructuring in developing nations facing economic distress, promote the modernization of global development banks to prioritize climate initiatives, and deepen the growing U.S.-India relationship. These frequent visits to India highlight the significance of the U.S.-India alliance, particularly amidst tensions with China.
In addition to China, India’s relationship with Russia has been a topic of discussion, as the Kremlin’s invasion of Ukraine continues despite international efforts to impose sanctions. While India has maintained energy trade with Russia, it has not participated in the efforts to punish Russia. Yellen emphasizes the importance of ending the war in Ukraine, not only as a moral imperative but also as a crucial step towards global economic stability. The U.S. aims to restrict Russia’s access to military equipment and technologies required for waging war against Ukraine.
The United States increasingly relies on India and seeks to strengthen economic ties. Yellen sees India as an essential partner in enhancing supply chain resilience and believes that private U.S. firms consider India an excellent location for production and exports to the United States. The slowdown in China’s growth has had a significant impact on other countries, and Yellen has discussed this issue with Chinese counterparts, acknowledging China’s interest in attracting foreign investment.
Yellen’s visit to India follows President Joe Biden’s state visit to the White House by Indian Prime Minister Narendra Modi, which aimed to underscore and foster bilateral relations between the two nations. Raymond Vickery Jr., an expert on U.S.-India relations, highlights the significance of Yellen’s visit to India after her trip to China, as Indian officials will be interested in the details of her meetings with Chinese counterparts and how it aligns with India’s perspective on economic relations with China.
Debt treatments for Ghana and Sri Lanka are expected to be discussed and finalized during the meetings, as both countries defaulted on their international debts last year. Over half of low-income countries are currently facing debt distress, impeding their long-term development. Yellen’s recent trip to China involved discussions on trade restrictions and national security concerns.
Overall, Yellen’s visits to India and China reflect the United States’ efforts to strengthen relationships, address global economic challenges, and promote stability in international trade and finance.
