U.S Treasury Secretary Jack Lew wants closer ties with India

Treasury Secretary Jack Lew has said India and the U.S. should work together to deepen capital markets, combat money laundering and financing for insurgents and extremists.

Lew is here for the fifth U.S.-India Economic and Financial Partnership Dialogue in New Delhi on Thursday.

He met Indian business leaders in Mumbai at the Confederation of Indian Industry (CII) and US-India Business Council Roundtable ahead of the talks in Delhi which will focus on capital market reforms and economic policies between the two countries.

"I hope we can work together to deepen capital markets to unlock domestic resources and welcome foreign investment into India; strengthen financial regulatory reform; improve our coordination on tax issues; and combat money laundering and terrorist financing," he said.

Lew quoted U.S. President Barack Obama, who during his recent visit to India, noted that the two business communities have been some of the strongest champions for a closer relationship between the two countries.

"Strengthening growth in both India and the United States will mean more demand, and more opportunities, for firms and workers in both our nations. Through the Economic and Financial Partnership, we will support India's growth and reform efforts and encourage opening of India's economy to U.S. firms," he added.

Last month, Obama pledged 4 billion dollar in investments and loans, seeking to release what he called the "untapped potential" of a business and strategic partnership between the world's largest democracies.

The United States views India as a vast market and potential counterweight to China's assertiveness, but has been frustrated with the pace of New Delhi's economic reforms.