Govt nod to raise India's quota in IMF to 2.75%

The government on Tuesday approved a proposal to increase the country's contribution to IMF, which would make it the 8th largest shareholder in the Washington-based multilateral agency.

The Cabinet's approval to increase India's quota in the International Monetary Fund follows Fourteenth General Review of Quotas of the agency.

"India's quota share at the IMF will increase from 2.44 per cent to 2.75 per cent, making it the 8th largest quota holding country at the IMF," Information and Broadcasting Minister Ambika Soni told reporters after the Cabinet meet.

Significantly, India's gain in terms of quota share is the 7th largest in 14th

round of quota review.

In absolute terms, New Delhi's quota will increase from special drawing right 5,821.5 million to SDR 13,114.4 million.

When the Fourteenth General Review of Quotas becomes effective, Soni said it will result in a major realignment of quota shares among members to better reflect the global realities.

All the BRIC (Brazil, Russia, India and China) countries would now be among the 10 largest quota shareholders at the IMF.

Emerging nations, including India, want greater say in the IMF in line with their increased economic clout.

The US and Europe together accounts for a significant share in the IMF.