India will be joining the league of the US, Japan, France along with other emerging markets peers as the top largest 10 members of International Monetary Fund.
The US Congress has approved the the crucial quota reform pending since 2010.
New Delhi had pushed for pending quota reforms since. Finance minister Arun Jaitley had strongly taken up the issue at the last fund bank meeting at Lima.
Under the IMF’s quota reforms of December 2010, developing countries will see a more than 6% shift in quota in their favour.
India’s vote share will go up to 2.69% from the current 2.34% .
Four emerging market countries (Brazil, China, India, and Russia) will be among the ten largest members of the IMF. Other top 10 members include the United States, Japan, and the four largest European countries (France, Germany, Italy, and the United Kingdom).
The quota shares and voting power of the IMF’s poorest member countries will be protected, an IMF statement said on Friday.
US Congressional nod had held up this crucial reform of the multilateral body.
“The United States Congress approval of these reforms is a welcome and crucial step forward that will strengthen the IMF in its role of supporting global financial stability. The reforms significantly increase the IMF’s core resources, enabling us to respond to crises more effectively, and also improve the IMF’s governance by better reflecting the increasing role of dynamic emerging and developing countries in the global economy,” IMF managing director Christine Lagarde said.