India’s commitment to India on Monday called for faster implementation of quota reforms at the International Monetary Fund that would give greater representation to the country at the multilateral body, even as the fund’s managing director Christine Lagarde indicated that the US is yet to ratify the move.
“The Prime Minister also emphasised the need to have greater representation for Indians at the higher level of IMF, particularly at the deputy managing director level,” said an official release. India, which currently has a quota of 2.44 per cent, with 2.34 per cent voting right in the IMF, has, along with other emerging economies, been seeking review of the quota system to give more say to these countries at the agency.
Jaitley too called for early implementations of the 2010 IMF Quota and Governance Reforms. Lagarde, who is on a two-day visit to India, also met President Pranab Mukherjee. She is scheduled to meet Reserve Bank of India governor Raghuram Rajan in Mumbai on Tuesday.
Earlier in the day, at an address at Lady Shri Ram College for Women, Lagarde also pitched for higher quota for the country at the IMF.
“Implementing the reform would lift up India within the top 10 shareholders of the institution. It’s hard work because there is one member which is not ratifying. The US that was determined to re-balance, to move Europeans out and bring emerging market economies in, is not ratifying the reform,” she said.
Terming India as the fastest growing economy in the world, she said it is a bright spot in the global horizon she said that the IMF expects growth to pick up to 7.2 percent this fiscal year and accelerate further to 7.5 percent next year. “By 2019, the economy will more-than-double in size compared to 2009. When adjusting for differences in purchase prices between economies, India’s GDP will exceed that of Japan and Germany combined,” she stressed.
Meanwhile, her meeting with the finance minister focused on issues including fiscal consolidation and devolution of taxes to states. Welcoming India’s commitment to lowering its fiscal deficit, she however, said that the country’s fiscal consolidation must be anchored in the medium term as it would give more stability to investors.