In order to give India a larger say in the working of multilateral bodies, Prime Minister Narendra Modi asked IMF to bring in quota reforms.
PM Modi said the long pending quota revisions agreed in 2010 have finally come into effect but “even now, IMF quotas do not reflect the global economic realities.”
“Change in quotas is not an issue of increasing the ‘power’ of certain countries. It is an issue of fairness and legitimacy. The belief that quotas can be changed is essential for the fairness of the system,” he said addressing a conference on Advancing Asia, co-hosted by India and the International Monetary Fund (IMF).
For poor nations to respect the legitimacy of such institutions, they must be able to aspire and to hope, he said.
“I am, therefore, very happy that the IMF has decided to finalize the next round of quota changes by October 2017.”
The Prime Minister said the quota reforms implemented in January reflects the emerging economies’ greater weight in the world economy.
“This will give them (emerging economies) more say in collective decisions in the IMF,” he said while lauding IMF Managing Director Christine Lagarde’s role in persuading all members to ratify the decisions taken in 2010.
Hoping that IMF would be able to build on this success, Prime Minister Modi said, “Reform of global institutions has to be an ongoing process. It must reflect changes in the global economy, and the rising share of emerging economies.”
IMF in January announced implementation of its long-pending quota reforms, which will give more voting rights to emerging economies such as India and China in the functioning of the multilateral institution.
India’s quota in IMF rose to 2.7 per cent from 2.44 per cent and its voting share increased to 2.6 per cent from 2.34 per cent.
For the first time, four emerging market countries of the BRIC bloc Brazil, China, India, and Russia will be among the 10 largest members of IMF.
Other top 10 members include the US, Japan, and the four largest European countries France, Germany, Italy and the UK.
During the summit, India & IMF have signed an agreement to set up a South Asia regional centre for training officials in dealing with macro-economic and financial issues.
(With PTI inputs)