Geithner for stronger India-US ties to prevent offshore tax evasion

US Treasury Secretary Timothy Geithner on Tuesday stressed on stronger India-US ties to prevent offshore tax evasion and maintained that stronger economic growth and investment are India’s largest challenges.

" I also believe India US relations are much better now than they were three to four years ago," said Geithner. Absence of drama between the two countries implies strengthening of relations, he added.

He, however, believes that India’s reform measures will surely boost sentiment and encourage FII inflows into the country.

Reforms by government of India are very promising and have been welcomed around the world, Geithner reiterated, referring to India’s decision to open foreign direct investment in multi-brand retail and allowing foreign carriers to invest in India’s airlines.

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Earlier in the day, he met with Finance Minister P Chidambaram in New Delhi to discuss ways to improve economic ties between the two countries.

The meeting came amid a flurry of new Indian government initiatives to attract foreign investment, improve the business climate and reignite the nation’s declining economic growth.

US Federal Reserve Chairman Ben Bernanke was also participating in the meeting, where officials were expected to discuss US concerns about the pace of financial reforms in India and Indian concerns about increasing difficulties in getting US visas for IT professionals.