US Federal Reserve chairman Ben Bernanke, in his maiden visit to India, discussed monetary policy challenges and banking issues with his Indian counterpart.
?We talked about the global economy, we talked about monetary policy, regulatory policy. We discussed the banking issues that we have mutual interest in,? Bernanke told reporters in a short media statement after the conclusion of his meet with the Reserve Bank of India Governor D Subbarao.
Bernanke and US Treasury Secretary Timothy Geithner wrapped up their two-day visit on Tuesday through meetings with industry representatives and finally with the RBI Governor.
On Monday, both the officials met finance minister P Chidambaram and Prime Ministery Manmohan Singh. Their visit follows those by Secretary of State Hillary Clinton and Defense Secretary Leon Panetta earlier in 2012. It also assumes significance in the wake of a flurry of measures by the Indian government to attract foreign investment and boost growth.
Geithner had said on Monday that the reforms by the government are very promising. Bernanke said India is assuming greater importance in global forum including the G-20. Bernanke, the first serving Fed chairman to visit India, said his meeting has been a constructive one.
?It is very useful for us to continue to exchange ideas and build the basis for future collaboration and coordination,? Bernanke said.
Bernanke’s pitch for dialogue comes in close heels with Geithner’s optimistic remarks on the Indian government’s recent reforms.
Even as the International Monetary Fund slashed the country’s economic growth forecast to below 5% for 2012-13, Geithner had downplayed it. The IMF’s job is to remind policymakers of what can go wrong, he had said, adding that he is very encouraged by the Indian government’s reform initiatives.
In another CII-arranged breakfast meet with industry leaders in Mumbai on Tuesday, the two officials again exuded optimism over the reforms.
The Fed chief is said to have briefed the industry representatives over the rationale behind quantitative easing as well.
