Leveraging India’s G20 Presidency to Address the IMF’s Quota Allocation Issue

This policy brief aims to examine the role of quotas at the International Monetary Fund (IMF), with a focus on India’s evolving relationship with the institution. Quotas have been a central element of the IMF’s financial decision-making since its inception. The assigned quota reflects a country’s level of special drawing rights, and was initially granted to the IMF’s 44 founding members. The purpose of quotas was to properly represent the post-war economic and political order. Currently, India’s quota at the IMF stands at 2.75 percent. In comparison, China and the US hold quotas of 6.4 percent and 17.43 percent, respectively, highlighting the hierarchical power structure of current global economic institutions. This brief aims to explore how India can strengthen its pragmatic position within the IMF through the successful conclusion of the 16th General Review of Quotas and by addressing the imbalances in the global economy. It also examines the quota reviews and recommendations with respect to emerging powers like India, and assesses the scope for developing countries to negotiate institutional reforms within the IMF.