Encouraged by India's recent reforms initiatives, US Treasury Secretary Timothy Geithner today said these will restore confidence of global investors in the country's economy.
"I feel very encouraged by the initiatives taken by the Indian government...it's good for us that we are here this time when there is so much change in air", he said at an interactive session organised jointly by the CII and US India Business Council (USIBC).
These initiatives, Geithner said, would also help in generating more investment from around the world.
The government has recently allowed foreign investment in multi-brand retail and announced the decision to raise FDI cap in insurance from 26 per cent to 49 per cent and open pension sector.
Geithner expressed optimism on India's growth story. "It is highly encouraging to see the current wave of economic reforms being initiated by the Indian Government as they would help in restoring investor confidence, thus reviving growth too," he said.
On the global recovery, Geithner said most of the revival is contingent upon how the developments in the Euro Area pan out as the latter remains the biggest uncertainty.
He praised the recent measures to combat the eurozone debt woes saying the bloc was on "a more promising path to resolving the crisis than we have seen in the past".
He further added that though India and US have had historically good economic relationship, it needed to be further strengthened in order to face the current bout of economic challenges.