Friday, US Treasury Secretary Janet Yellen advocated for stronger trade ties with India, as well as "friendshoring," which aims to create a resilient supply chain of allies that is less reliant on countries like Russia and China.
Janet Yellen, the US Treasury Secretary, advocated for increased commercial connections with India on Friday, emphasising the need of "friendshoring" to build a reliable supply chain independent of Russia and China.
There are high costs associated with supply chain vulnerabilities worldwide, therefore we think it's crucial to fortify our trade relationships with India and the many other nations that share our outlook on economic relations. Our mission is to strengthen global economic integration and diversify our supply chain to reduce exposure to risks associated with concentration. To further our national security, we must diversify our commerce away from potentially volatile nations like Russia, which seeks to use commercial integration as a weapon to further its geopolitical goals. She said that they have coined the term "friendshoring" to describe this method of outsourcing to friends and family.
At each of her three public appearances—a visit to the Microsoft headquarters, an event attended by industry executives, and a speech made before a meeting with finance minister Nirmala Sitharaman—she stressed the importance of friendship and a strong supply chain.
The Indo-Pacific Economic Framework, a consortium of 14 nations that includes the United States, is working on an endeavour to create a resilient supply chain. India is a member of this initiative.
Yellen's comments came as India was under criticism from the developed world over its oil purchases from Russia. However, New Delhi has responded by attacking these critics. Yet many saw this as a provocation to break India away from Moscow.
While advocating for stronger economic cooperation, the former head of the US Federal Reserve slammed Russian President Vladimir Putin's "barbaric" and "brutal" conflict for the loss of life in Ukraine and the rise in global food and energy shortages.
She also pushed back on Russia's assertion that it is "a stable energy partner." Putin has been using Russia's natural gas supply as a weapon against the people of Europe for the greater part of this year. As so, it exemplifies how bad actors may utilise their market power to acquire geopolitical advantage or disrupt commerce for their own benefit.
The US finance secretary cited many examples of new supply chains growing in India, including investments by Apple and Google in mobile manufacturing and the financing of $500 million by an American business for a solar module manufacturing plant in Tamil Nadu.
The production of solar panels in India will increase thanks to this new plant. Furthermore, it will aid in shifting manufacturing away from China, which presently accounts for over 80% of global solar panel output. Our financial decisions are also in line with our morals, since it is common knowledge that certain solar panel components made in China, particularly in the Xinjiang area, are made using child labour.
Yellen slams the need for global crypto regulation collaboration.
In a bilateral meeting with Indian Foreign Minister Nirmala Sitharaman on Friday, US Treasury Secretary Janet Yellen brought up the topic of cryptocurrency regulation, which led to a request for stronger international cooperation, both among public agencies and the private sector. With the Financial Action Task Force and multilateral banks like the International Monetary Fund, "we are very actively working in the framework of financial stability to truly address on a global scale the dangers and some of the advantages from cryptocurrencies," she added.
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