FM Nirmala Sitharaman calls for greater coordination among BRICS nations on IMF's quota review

India on Tuesday pitched for greater coordination among BRICS nations on the issue of the 16th general review of quotas of the International Monetary Fund (IMF) to give more say to developing countries.

As per an IMF resolution, the 16th General Review of Quotas should be concluded by December 15, 2023.

Any adjustment in quota shares would be expected to result in an increase in the voting rights of emerging countries in line with their relative positions in the world economy.

It would likely result in an increase in the share of emerging markets and developing countries as a whole, while protecting the voice and representation of the poorest members.

Finance Minister Nirmala Sitharaman, while chairing the BRICS Finance Ministers and Central Bank Governors Meeting, emphasised on the need for the five-nation grouping to respond to the Covid-19 crisis through policy support and enhanced international coordination.

Brazil, Russia, India, China and South Africa (BRICS) are members of the grouping.

As the 2021 BRICS Chair, India's approach is focused on strengthening intra-BRICS cooperation based on continuity, consolidation and consensus, the finance ministry said in a statement. "This was the first meeting of the BRICS Finance Ministers and Central Bank Governors under India Chairship in 2021. BRICS Finance Ministers and Central Bank Governors discussed financial cooperation agenda set by India for 2021 - Global Economic Outlook and Response to COVID-19 pandemic, New Development Bank (NDB) Activities, Social Infrastructure Financing and Use of Digital Technologies, Cooperation on Customs related issues, IMF reforms, Fintech for SMEs and Financial Inclusion," it said.

On the BRICS priorities and agenda for 2021, Sitharaman said efforts should be made towards delivering outcomes that reflect the needs and aspirations of the group in particular and emerging markets and developing economies in general.

She also stressed on thematic priorities for the New Development Bank for discussion during 2021 and the issue of membership expansion.

On the Covid-19 pandemic, the finance minister said the world's largest vaccination drive is underway in India and it has supplied 64.5 million vaccine doses to 84 countries.

Speaking on the importance of social infrastructure and the use of digital technologies, Sitharaman underscored the merit in engaging with the private sector and exploring innovative financing models.

Sitharaman also said the Prime Minister's Health Insurance Scheme using an output-based funding model has triggered a major private investment cycle in healthcare infrastructure. This has enabled significant expansion of healthcare services to vulnerable citizens.