India wants early IMF reforms
India would like to see early implementation of the 2010 IMF quota reforms. These quota reforms seek to provide greater say to developing economies in the IMF. The point was made by Finance Minister Arun Jaitley during his meeting with the visiting IMF Chief Christine Lagarde. The FM also elaborated on the reforms under way and the commitment of the Government to accelerate growth while adhering to the path of fiscal discipline.
On her part, Christine Lagarde said India deserved a greater say in the global body but lamented that the US was “not ratifying” the quota reforms that would facilitate larger roles of emerging economies at the multilateral institution. The IMF was looking at alternatives to realign quotas that will put India into the top 10 shareholders, she said. As and when these reforms are implemented, India would be one of the top ten shareholders of the IMF.
As per the current quota system, the US has 17.69 per cent while the voting right is 16.75 per cent. It is followed by Japan – 6.56 per cent with 6.23 per cent voting share. India has quota of 2.44 per cent, with 2.34 per cent voting right.