India for three-fold increase in IMF equity

NEW DELHI: India pitched for tripling the International Monetary Fund's (IMF's) equity to SDR 650 billion (about USD 975 billion) to empower the multilateral funding agency to play an effective role in pulling the global economy out of the current crisis.
India pleaded for 200 per cent increase in the quota size (kind of equity) of the IMF at the G-20 meeting in London last week, arguing that the current resources of the Fund are inadequate to meet the demands of the world economy in the wake of the financial crisis, which is likely to be prolonged.

The total size of the IMF quotas is SDR 217 billion, in which India's share is SDR 4.16 billion.

Prime Minister Manmohan Singh too had said after the G-20 Summit in London, "India does not need IMF funding but we have been in favour of expanding IMF resources as this will help developing countries that need assistance. It will restore confidence about emerging markets."

According to sources, India, during the G-20 Sherpas Meetings (preparatory meetings for the Summit), also underlined the need for an early conclusion of the IMF quota review even before 2011, in addition to endorsing a target quota increase by 200 per cent.