Geithner calls off India trip, meeting with finance minister

Treasury Secretary Timothy Geithner has canceled next week's trip to meet with India's finance minister, Pranab Mukherjee, because the minister is running for president and is expected to soon resign his current post, the Obama administration announced Tuesday.

The decision allows the United States to avoid the appearance that it's taking sides in the presidential race, which is set for July 19. Mukherjee is favored to win election to the prestigious but largely ceremonial role.

Mukherjee has been a close partner of the United States on a number of recent breakthroughs in the relationship between the world's two largest democracies, and the Treasury Department made clear that it hopes cooperation will continue after he steps down.

"Finance Minister Mukherjee has been an effective ally in the G-20 and a strong partner in deepening the economic relationship between the United States and India,” the statement said. “The Treasury Department looks forward to rescheduling the Partnership meeting in the months ahead.”

Mukherjee was minister of defense in 2005 when the United States and India signed a 10-year agreement calling for closer military ties, including joint weapons production and cooperation on missile defense. As minister of external affairs three years later, he signed a nuclear cooperation deal with the Bush administration allowing India to purchase nuclear fuel and technology from the United States.

And as finance minister since 2009, he has paved the way for closer trade and economic ties as part of the Obama administration's “pivot” to Asia.