Once dependent over International Monetary Fund for its needs, India will now play a major role to provide resources to IMF. The country has announced to invest up to $10 billion in IMF which would be further lent to the needy nations.

Finance Minister, Mr. Pranab Mukherjee said that the move will not impact resources of the Indian government. The country will invest the funds from its reserves in Notes issued by the IMF.

The board of international financial institutions has recently announced a program in order to issue such notes. These investments will be treated as international reserves and used to finance the needs of various nations.

A statement by Finance Ministry stated, “India believes that the IMF is a quota-based institution and raising resources through bilateral financing and expansion of the new arrangements to borrow are not a substitute for quota resources, but a temporary bridge to a quota increase.”

Total of $80 billion will be invested by BRIC nations into IMF including $50 billion by China and remaining by India, Russia and Brazil. India hopes that next general quota review will address the demands of emerging market economies and developing countries related to re-balancing of quota and voting-power.