NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, January 26, 2015

US President Barack Obama Sunday affirmed his commitment to enhancing India’s ’voice and vote’ in global financial institutions like IMF.

Obama and Prime Minister Narendra Modi emphasised the importance of strengthening international financial institutions, including the International Monetary Fund (IMF), said a joint statement issued after a meeting between the two leaders here.

“The President also affirmed his commitment to enhancing India’s voice and vote in international financial institutions and ensuring that resources are made available and used creatively through multilateral development banks for infrastructure financing,” it said.

India has been pressing for higher voting rights in IMF which would reflect its growing influence in world economy.

The proposed quota reform in IMF, once implemented, will increase India’s voting share from the current 2.44 percent to 2.75 percent, following which country will become the eighth largest quota holder at the IMF, up from the 11th position.

The statement also said that Modi appreciated the efforts of the US Treasury for co-operating with the Finance Ministry on the Task Force on Resolution Corporation, set up in pursuance of recommendations of the Financial Sector Legislative Reforms Commission.