US Treasury Rep office in Mumbai

Mumbai, May 2 (UNI) Signifying its growing role in the Indian Sub-continent, the US authority has decided to set up a full time representative office in Mumbai in order to keep close track on day to day happenings in economic and financial markets.

The visiting US undersecretary for International Affairs Timothy Adams told select media persons here today that India was the third destination after Tokyo and Beijing in China to have a treasury representative, reflecting the growing interest that India has offlate generated among American decision makers and investors.

Mr Adams who visited Kolkata and Chennai before arriving at Mumbai, emphasised that India must open up its financial sector for greater inflow of foreign funds in order to develop its infrastructures, mainly the power and energy sector besides roads, ports and airports.

The opening up of the financial sector coupled with the proposed convertibility of rupee would lead to greater competition among the foreign institutional investors (FIIs) in the country though Mr Adams realised that the democrary increases the complexity of reform process.

However, he said, the telecom sector reform could be replicated to other sectors also particularly the power sector.

Mr Adams who discussed various economic issues with top executives of the Reserve Bank of India today, felt that a flexible foreign exchange policy would help the country for its own development and India must realise its potential to scale the economic growth.

Asked about the role of IMF in emerging markets, the US Secretary said that India must be given a greater say in the role of IMF in order to have appropriate respond to the dynamic financial system in the emerging markets. ''India's leadership is importance in IMF voice like USA and Europe'', he added.

The fast growing nations like India is under-represented in IMF and this needs to be revamped with evolution of global economy, he said.

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