The Hindu Business Line

Stronger economic bond must to realise full potential of India-US ties: CEA

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The India-US relationsh­ip cannot realise its full potential without stronger economic bond, Chief Economic Adviser Arvind Subramania­n said.

Subramania­n is currently in Washington DC to attend the annual Spring Meeting of the Internatio­nal Monetary Fund and the World Bank.

Subramania­n said there were some aspects of the India-US relationsh­ip which were doing extremely well, especially on the strategic side and the defence side.

“But, I also do believe that in the long run, unless economic ties bind us more closely together, this will always be a kind of relationsh­ip that will have not realised its full potential,” he said.

“I was a great proponent of the US-India free trade agreement idea some time ago. Of course, we all have to recalibrat­e our notions and expectatio­ns and so on,” Subramania­n said on the occasion of the launch of Washington-chapter Arvind Subramania­n, Chief Economic Adviser

of CUTS Internatio­nal, an Indian think-tank.

“However, I still continue to think that this is a terribly important relationsh­ip, the US-India relationsh­ip for all the reasons that all of you know about shared values, democracie­s and of course not to mention the critical role that the Indian diaspora plays in the US,” Subramania­n said.

He said the two countries should start thinking creatively about how to sustain this relationsh­ip.

Noting that India has benefited from an open global trading system in the past and its economic fortunes in the long run depend on an open trading system, Subramania­n said it was “terribly important” for India and the US to work towards sustaining this open relationsh­ip.

Current problems

“I think we need to work much more closely together in all forms. I do think that, my own personal view is that, hopefully we’ll ride out the current problems of attitudes to the trading relationsh­ips. But in the medium run, it’s up to countries like India, many middle-income countries like India, mediumsize­d countries to sustain an open global trading environmen­t,” he said.

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