US economy growing close to potential: Geithner

"The US has been growing a little above 2 percent, though the European crisis has been a significant shock. US-based companies have been able to bring back manufacturing to the US," said US treasury secretary Timothy Geithner at an interaction with members of the Confederation of Indian Industry (CII) in New Delhi on Tuesday, reports CNBC-TV18.

Geithner is leading a delegation of key US govermnment officials including Federal Reserve chairman Ben Bernanke, on a two-day visit to India.
"Though the US economy is still tough with high unemployment,the basic features of the economy are strong. The US is in a much stronger condition today than any developing economy," he explained.
Earlier in the day, Geithner welcomed the Indian government's new-found appetite for economic reform and hailed the latest reforms as "significant", while addressing mediapersons along with finance minister P Chidambaram in New Delhi. "The reforms will take time to bear fruit," he said while commenting in the slew of measures announced by the government in the last one month.
Explaining that US economic forecast depends on the euro-zone crisis, he said," I'm very confident that the US will manage its discal issues." He added that though uncertainty still persisted in the European market, he felt encouraged by the measures taken up by The Indian government.
 
"The Indian government's reforms will boost FIIs. We will use Indo-US cooperation to prevent tax evasion and the impact of initiatives taken by India is very powerful," he added.
Geithner added world has great respect for recent reforms in India and said that the absence Of tension between India and the US was a sign Of strength.
(With inputs from agencies)