India and the US on Wednesday agreed to enhance cooperation to deal with global challenges like high commodity prices and volatility in capital flows, besides strengthening bilateral trade and investment.
"The two sides agreed to a robust roadmap for the coming year that included deeper engagement in ... macroeconomic challenges, including growth, inflation, global liquidity, commodity prices, international capital flows...," said a joint statement issued after the second US-India Economic and Financial Partnership meet.
Finance minister Pranab Mukherjee held bilateral discussions with top US officials, including Treasury Secretary Timothy Geithner, during his three-day visit.
The statement said India and the US will work together to expand trade and investment links between their economies, and will further develop and strengthen their financial systems.
The two democracies will also work together in the G-20 on an effective mutual assessment process to bring about strong, sustained, and balanced global growth.
The joint statement said that the US is committed to making the investments in technology, skills and infrastructure necessary to maintain and enhance its competitiveness in the global economy.
It said that India intends to take steps to marshal private and public saving to meet the infrastructure needs of a rapidly growing Indian economy.
In the meeting, Mukherjee and Geithner discussed the challenges that both economies faced in ensuring a strong recovery and price stability in the short term, as well as the range of policies necessary to reach growth at our full potential domestically.
The two nations also agreed on financial sector reforms, including deepening of capital markets, financial inclusion, and ensuring the stability, transparency, and integrity of the financial system.
Since the first meeting in April 2010 in Delhi, India-US partnership had led to deeper institutional relationships and exchanges between economic and financial sector regulators.
Over the past decade, trade and investment between the two countries had expanded across a variety of industries and sectors.
Despite this progress, the joint statement recognised that there remained untapped potential and opportunity to expand trade and investment linkages to the benefit of both countries.