US Treasury Secretary Proposes ‘Friendshoring Approach’ with India to Strengthen Supply Chains

United States proposes a strategy known as "friendshoring" to strengthen the resilience of its supply chains. Yellen stated, "I am eager to deepen our ties in the technology sector. We are doing this by strengthening integration with our many trusted trading partners, including India."

"We are seeing progress; for example, technology companies such as Apple and Google have increased their phone manufacturing in India," Yellen stated. US is investing in digital technologies that will drive inclusive and resilient growth in India through the Partnership for Global Infrastructure and Investment (PGII).

She further said that these are in addition to investments in renewable energy, health, and other infrastructure sectors in India. Overall, the US aims to mobilize USD 200 billion for PGII by 2027, and we look forward to partnering with India to continue investing in its future, according to a statement released Saturday morning by the US Treasury Secretary.

Yellen stated that one of the most rewarding aspects of her job is meeting with innovators, entrepreneurs, and business leaders from around the world, particularly in India, which has one of the world's most dynamic economies.

The Treasury Secretary quoted what President Biden has said "India is an indispensable partner to the United States," while addressing a roundtable with US and Indian tech business leaders on the sidelines of G20 Finance Ministers and Central Bank Governors Meeting and added, "I was able to see the strength of our economic ties firsthand in November when I visited Delhi for the US-India Economic and Financial Partnership. And I'm delighted to be returning to India to build on my previous visit."

According to Yellen, the United States is India's largest trading partner. She stated that bilateral trade between the two countries would exceed USD 150 billion in 2021. "Our human connections confirm the closeness of our relationship. "There are 200,000 Indians studying in America, enriching our schools and universities," she said. "We rely on each other on a daily basis," Yellen said, "Indians use WhatsApp to communicate, and many American companies rely on Infosys to operate."