In a significant reflection of the country's growing economic clout, India will shoot up to the eighth place in the Board of the International Monetary Fund once the G-20 countries approve the quota reforms that have already been proposed.
"India will move to the eighth position in the IMF Board from its present 22nd position. We will get much more in the quota share once the
G-20 leaders take a political decision to approve what has been decided by the IMF on quota increase in 2008," Indian Planning Commission Deputy Chairman Montek Singh Ahluwalia told reporters here briefing on the deliberations ahead of the G-20 summit beginning Thursday.
While the decision was taken by the IMF two years ago, the approval by the G-20 Finance Ministers last month in South Korea has added significantly to its merit and the decision at the highest political level in the G-20 will amount to a "seal of approval" that can be implemented thereon.
Ahluwalia said the IMF reforms of six per cent shift in quota have helped India and China to some extent.
With eighth largest quota India gets much more in the quota share and China is the third largest beneficiary after India.
Strictly speaking, at present the IMF Board has 20 members and the decision has been approved by a number of countries. About 15 more, however, have to approve it.
India moving to the eighth position is an assured outcome.
"We will not not get marginalised. Our vote is more.
Ultimately these organisations go by consensus on ultimately how you are respected and what alliances you make," he said.
On current account deficit induced by excessive financial flows from abroad, Ahluwalia said a three per cent level of CAD is "not too high at all" this year or the next year.
"I am quite comfortable with three per cent deficit.
55 billion dollars inflow is ok. Another 20 billion dollars is also ok. If it goes up to 100 billion dollars and if you ask me are you going to say the rupee should be appreciated, I will say no. The rupee will reflect volatility and temporary eruption," he said.