New York: India pitched for increasing the voting power of emerging economies in the International Monetary Fund by 5%-6%, which will give developing countries a greater say in how the 186-nation Fund is run, reports PTI.
"Quota reforms in IMF is one of our basic objectives...
We want at least 5% to 6% quota should be increased in IMF and emerging market economies of the world should have their shares," Pranab Mukherjee told PTI here on Wednesday.
In April this year, India wrested greater say in the affairs of World Bank when member nations approved a shift in voting rights. This saw India's voting rights increase to 2.91% from 2.77% — making it the seventh largest member.
"This is one of the subjects that will emerge in the course of my discussions with the authorities of the World Bank and IMF," he added.
Mr Mukherjee will raise the matter at the annual meeting of the International Monetary Fund and the World Bank, which kicks off in Washington on Thursday.
Once their voting powers are increased, developing nations would be able to influence how and where the funds are deployed, such as fighting poverty and fostering development.
The Brussels Declaration on more effective global economic governance, adopted at the conclusion of the eighth Asia-Europe Meeting, stated that IMF quota shares should be shifted to dynamic emerging markets and developing countries by at least 5% from over-represented to under-represented countries.
Like the United Nations' Security Council, which is criticised for reflecting the political power structure that existed after the Second World War, the International Monetary Fund (IMF) is rebuked for reflecting the economic dynamics of the same era.
He pointed out that the developing countries were making a substantial contribution in the world's output and gross domestic product (GDP) and "according to us the quota and governance structures of IMF does not reflect the ground realities."
Underling the urgent need for reform, Mr Mukherjee said that global economic realities "should get reflected in the share in the quota and governance architecture of the world's financial institutions."
Mr Mukherjee also plans to raise this issue again at the meeting of finance ministers from the Group of Twenty (G20) countries in South Korea, later this week.
New Delhi: The government today deferred a decision on giving approvals to Jet Airways' proposal for qualified institutional placement (QIP) and GMR Airports' plan for a foreign investor in the Bangalore Airport, reports PTI.
The Foreign Investment Promotion Board (FIPB) in a meeting earlier this month, however, cleared six foreign direct investment proposals worth Rs5.46 crore, an official statement said.
The statement did not list any reason for deferring Jet and GMR Airport proposals.
"Based on the recommendations of the Foreign Investment Promotion Board (FIPB)... government has approved six proposals of Foreign Direct Investment (FDI) amounting to Rs5.46 crore approximately," the statement added.
It also deferred consideration of seven proposals, including Jet Airways' equity investment through qualified institutional placement (QIP) route and GMR Airports Holding's intent to induct foreign equity in an investing company.
The government had also deferred the proposals of equity induction in Falcon Tyres and Telecordia Technologies, among others.
Of the FDI proposals approved, the highest investment approval is with May House Publishers Pvt Ltd (Rs3.21 crore), followed by media firm What's on India Media Pvt Ltd (Rs2.24 crore).
Also, media house Zee Entertainment Enterprises has been allowed to induct foreign equity by way of transfer of shares by way of share swap.
Among the other proposals, Asergies Telecom Services (Bangalore), Praxair India Pvt Ltd and Newedge Broker India has been allowed to separately to get foreign equities.
The government also rejected five FDI proposals, including Shriram Capital's plan to induct foreign equity in an investing company.
Proposals of other companies, such as CNI Enterprises, Quantium Solutions International, were also rejected.