US Treasury Secretary Calls India Biggest Trading Partner, Pitches For 'Friendshoring'

Janet L Yellen said the United States is advancing an approach called "friendshoring" to bolster the resilience of our supply chains during the roundtable with US and tech business leaders from India

US Treasury Secretary Janet Yellen holds a meeting with Indian IT veterans Nandan Nilekani, Rishad Premji and others in Bengaluru ( Image Source :ANI )

US Treasury Secretary Janet L Yellen on Saturday called India the biggest trading partner as she pitched for advancing an approach called "friendshoring" to strengthen the resilience of supply chains.

Yellen was addressing a roundtable with US and tech business leaders from India on the sidelines of G20 Finance Ministers and Central Bank Governors Meeting. "The US is India's biggest trading partner. In 2021, our bilateral trade was over $150 billion. Our people-to-people ties affirm the closeness of our relationship. 200,000 Indians are studying in America and enriching our schools and universities. We depend on each other on a daily basis: Indians use WhatsApp to communicate and many American companies rely on Infosys to operate," said Yellen, according to the news agency PTI report.

Top tech leaders, including Infosys chairman Nandan Nilekani, IBM India managing director Sandip Patel, Intel India country head Nivruti Rai, Foxconn India Country Head Josh Foulger and Wipro chairman Rishad Premji were present at the roundtable discussion.

"As we look towards the future, I am eager to deepen our ties in the technology sector. The United States is advancing an approach called "friendshoring" to bolster the resilience of our supply chains. We are doing this by strengthening integration with our many trusted trading partners – including India. We are seeing progress; as an example, technology companies like Apple and Google have expanded their phone production in India," she added.

Yellen also met finance minister Nirmala Sitharaman on Thursday. The second Finance and Central Bank Deputies Meeting under India’s G20 Presidency is underway in Bengaluru. 

The two leaders discussed perspectives on strengthening multilateral development banks (MDBs), global debt vulnerabilities, crypto assets, and health, besides energy transition partnership (JETP).

The US in its new 'friendshoring' approach is diversifying away from countries that present geopolitical and security risks to our supply chain. Friendshoring approach involves partnering with developing countries to grow local industries and connect them to the global supply chain.

Talking about the Partnership for Global Infrastructure and Investment (PGII), she said, the US is investing in digital technologies that will drive inclusive, resilient growth in India.

Under the initiative, the United States has announced investments in agri-tech to enable climate-smart agricultural production, and in digital payments systems for microentrepreneurs.

These stand alongside investments in renewable energy, health, and other infrastructure sectors in India, she said, adding, the United States aims to mobilise USD 200 billion through 2027 for PGII, and look forward to partnering with India to continue investing in its future.