ABSTRACT:

 

 

 

India is a founding member of the International Monetary Fund. Since 1945, India lent its support to an Institution that was intended to put an end to the disastrous practice of competitive depreciation of currencies by establishing par exchange rates. India’s bustling democracy and reform-oriented leadership always received support from the Fund Management. As a member of the G-20 and G-24 group of Nations, with a chair at the IMF since 1944, India’s contribution to IMF reforms, addressing macroeconomic imbalances and as a spokesperson for Emerging Market Economies & PRGF countries has been significant. Indian Executive Directors contributed regularly to IMF’s ongoing work on capital flows and capital markets on the IMF Board. India has availed 3 IMF programs over the past 70 years – 1966, 1981 and 1991. The major reason for successful implementation of all the 3 programs was the convergence of ideas between India’s top bureaucracy and IMF staff. Following the 7th quota review, India lost its nominated seat on the IMF and had to settle for an elected seat. India’s position in the elected category was further eroded when China sought to re-enter the IMF in 1980. Today, China has 6.41 percent quota and India has 2.76 percent quota on the IMF Board. Further the Renminbi has been inducted into the SDR basket of currencies. The IMF itself has undergone massive changes in this period even as economic reforms in India gathered momentum and took deep roots. The lecture reviews the relationship between the IMF and India since 1944, with focus on the IMF programs with India, the major financial crisis in the world during this period, the changes in the character of the IMF, the rise of BRICS Nations and the roadmap ahead for India – IMF relations.

 

 

 

*V.Srinivas is the Chairman of the Board of Revenue for Rajasthan, Ajmer. He is also an Indian Council of World Affairs Fellow for 2017 for his forthcoming book India and International Monetary Fund. He has a Masters degree in Chemical Engineering from College of Technology Osmania University. He is a member of the Indian Administrative Service from 1989 batch, and has 30 years of distinguished service. He has served as Chairman Rajasthan Tax Board, Deputy Director (Administration) AIIMS, Director General National Archives of India, Joint Secretary in Government of India in the Ministries of Textiles and Culture, Finance and Planning Secretary, Rajasthan, Advisor to India's Executive Director on the International Monetary Fund (2003-2006) and Private Secretary to Finance and External Affairs Minister. Mr. Srinivas has authored 58 articles on public finance and delivered 7 orations in 2017 including the International Archives Day Oration at the Reserve Bank of India Pune, the 125th Librarians Day oration at the National Library Kolkata, special lectures at the LBSNAA, Mussoorie, the National Archives of India and the Centre for Multilevel Federalism Institute of Social Sciences, the Independence day oration at the Amity University. He is a recipient of a number of awards and merit certificates for distinguished public service and has travelled widely across India and the World.