In a move that acknowledges India's contribution to global growth and stability, the IMF has proposed raising its quota and vote shares which would push its position up to 11th among the 184 member nations.
The major reform proposal under which the quota share would be increased from 1.92 per cent to 2.44 per cent and vote share from 1.88 per cent to 2.34 per cent was endorsed by the International Monetary and Financial Committee of the IMF today.
The IMFC-endorsed reform package, which is expected to be put to formal voting on April 28, came as India sought a realignment of votes alloted to countries in the International Monetary Fund.
"The IMF can now be justifiably proud that it is the first international organisation that has taken a significant step in reforming its governance structure. This modest, albeit crucial first step will surely have a catalytic effect on reforms in the World Bank and other organisations under the UN umbrella," Finance Minister P Chidambaram said.
He said a "near consensus" on the new formula was more important than the second round of ad-hoc quota hike itself. Chidambaram, who was speaking at a World Bank-organised event, also welcomed the forward movement on implementing the income model of the Crockett Committee, particularly on sale of "post-Second Amendment Gold" and the creation of an endowment.
"I expect this proposal will be endorsed expeditiously by national authorities across the membership of the Fund and a significant source of steady income would be available without further delay," he said.