Christine Lagarde backs PM Modi's demand for greater say in IMF

International Monetary Fund (IMF) Managing Director (MD) Christine Lagarde called India a bright spot in the cloudy global economy on Monday and prescribed reforms in subsidy, labour market and monetary policy even as India pressed her for a greater say in the world body.

Prime Minister Narendra Modi, who met Lagarde in the national capital, pitched for a greater representation of Indians in top leadership positions, particularly at the deputy MD level at the IMF. Union Finance Minister Arun Jaitley also pitched for early implementation of IMF quota reforms to give a more say to emerging economies like India.

Earlier, during a lecture at Lady Sri Ram College, Lagarde too pitched for a greater say of emerging countries like India at the IMF but said that the US is not ratifying the quota reforms. "The International Monetary Fund is looking at alternatives to realign quotas that will put India into the top 10 shareholders," she said.

"Implementing the reform would lift up India within the top 10 shareholders of the institution." IMF, she said, is looking at options. "I hope some would be acted upon. I certainly hope so. But we need to (bring) comprehensive reforms ... so that economies are represented in a fair manner," Lagarde added.

Quota reforms seek to provide greater say to developing economies in the IMF. Lagarde emphasised that IMF is a global multilateral institution where countries like India must have bigger say.

The ratification of the US is necessary to implement the quota reforms, agreed by the member countries in 2010.

Earlier in the day, Lagarde had said during an event that one of these days an Indian could head the IMF.

"I hope one of these days. I can't tell you when. One day of course," Lagarde said in reply to a query on when an Indian could head the IMF.