India is set to become the eighth largest shareholder in the IMF after quota reforms which are likely to be finalized at the multilateral agency’s Annual Meeting at Tokyo in October. Once the quota reforms are carried out, India’s share at IMF is set to rise to 2.75 percent from 2.44 percent, making it the eighth largest shareholder in the multilateral agency from its present 11th position.
Last week Prime Minister Manmohan Singh had announced that India would contribute $10 billion to the IMF’s $430 billion bailout fund for the eurozone. India’s contribution was part of a pledge by the G20 nations to supply the IMF with extra firepower. All the BRICS nations have pledged to contribute $75 billion to the IMF to bail out the European Union nations crippled by financial crisis. China has offered $43 billion, while Brazil and Russia pledged $10 billion each and South Africa offered $2 billion.
The implementation of the quota reforms has been delayed as countries such as the US have not yet ratified the proposal. The issue of quota reforms came up for discussion at the recent G20 summit at Los Cabos and the world leaders had underlined the need for expeditious completion of the quota reforms to give more say to emerging economies.