Yellen expressed enthusiasm for the forthcoming investment platform, which seeks to facilitate a lower cost of capital and increased private investment to expedite India's transition to clean energy. The statement was issued during Yellen's visit to Gandhinagar, the capital of Gujarat, a highly industrialized state in India. This visit marks Yellen's third trip to India this year, underscoring the growing proximity between the two countries.
Finance Minister Sitharaman echoed the commitment to achieving significant outcomes through close engagement, emphasizing the potential for development cooperation and alternative investment avenues for renewable energy.
The strengthening bilateral relations between the US and India were highlighted during Indian Prime Minister Narendra Modi's recent state visit to Washington, which witnessed the signing of numerous defense and high-technology agreements.
Yellen also mentioned that the two nations are nearing an agreement on the implementation of a global minimum tax system. In 2021, the US spearheaded a historic deal in which nearly 140 countries agreed to impose a minimum 15% tax on large multinational corporations and an additional 25% tax on "excess profits."
During the G20 meeting, Australia and Japan expressed their hope for progress on the global minimum tax initiative. However, some analysts remain skeptical about the feasibility of achieving consensus on such a comprehensive overhaul of cross-border taxation, as certain governments may prioritize their national tax regimes.
Following the conclusion of the G20 finance meetings on July 18, Yellen is scheduled to visit Vietnam.