According to an IMF decision, the 16th GRQ is scheduled to be completed by December 15, 2023. Any adjustment to the quota shares would likely result in an increase in the voting rights of emerging economies in line with their relative position in the global economy.
While attending a breakfast meeting of the IMF Board of Governors on “Dialogue on Policy Challenges” in Marrakech, Morocco, Sitharaman raised concerns about a slowdown in global growth.
Noting that 2023 will be a year of continued uncertainty, she expressed concern about weak medium-term growth and political trade-offs facing policymakers worldwide.
However, she said India continued to be the fastest-growing major economy with growth of 7.8 per cent in the first quarter of 2023-24.
In light of increasing global debt vulnerabilities, she emphasized the importance of the Global Sovereign Debt Roundtable to promote cooperation on debt issues and IMF policy reforms, and to work with members in debt distress.
“FM Smt. @nsitharaman reiterated his commitment to a strong, quota-based and adequately resourced IMF at the center of the global financial safety net, as well as climate action based on common but differentiated responsibilities and corresponding capabilities,” the finance ministry said in a post on X.
The global financial safety net is a set of institutions and mechanisms that provide insurance against crises and financing to mitigate their effects.
During the plenary session of the International Monetary and Financial Committee (IMFC) later in the day, the Finance Minister reiterated the importance of IMF quota reforms to ensure a sufficiently resourced IMF at the center of the global financial safety net and to strengthen the IMF’s lending capacity to support members through the IMF -Credit instruments to prevent debt crises.
In her speech, Sitharaman emphasized the need for collective action on common issues and noted the importance of the IMF’s bilateral surveillance and capacity development in providing tailored advice to members.
She emphasized the need for a supportive IPR regime for technology transfer of climate change innovations to developing countries and welcomed the emphasis on the need for global cooperation in this area in MD IMF’s global policy agenda.
“Union Finance Minister Smt. @nsitharaman, supported the IMF’s focus on #digitalization and emphasized that India has worked during the #G20 Presidency to ensure that lessons from the digital public infrastructure revolution #DPI are shared as a global public good,” it said another post on X said.
She stressed that a coordinated response by the global community will promote multilateralism in the spirit of “Vasudhaiva Kutumbakam” – One Earth, One Family, One Future.
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