Satisfied with the outcome of G20 meeting, Finance Minister P Chidambaram has stated that India's concern with regards to the US Fed tapering and IMF quota reforms were addressed during the G20 meet. The G20 Summit 2014 on February 22-23 was attended by Finance Ministers of several important countries including the US, Japan, France and Australia along with the representatives of global bodies like the International Monetary Fund (IMF) and European Central Bank. Collectively G20 nations represent 85 per cent of the global economy.
Chidambaram has expressed concern over the impact of monetary easing by the US Federal Reserve on the developing countries and highlighted the need to expedite IMF quota reforms to extend more benefits to emerging economies in the multilateral lending body. Emerging economies favored the IMF quota, however, it hit a roadblock as the US refused to increase its contribution. The IMF’s 14th round of quota reforms began in 2010 and will be completed by April 2014. Further, Finance Minister, during the G20 summit, asserted that developed nations should cooperate with developing countries during the economic recovery. Chidambaram has further stated that developing countries require more and better infrastructure, therefore India has strongly supported the World Bank’s proposal to set up a global infrastructure facility.
The G20 Summit adopted a soft target of raising the global GDP by 2 percent in the next five years. Central banks of G20 nations also maintained their commitment that monetary policy settings will continue to be carefully calibrated and communicated, considering the impacts on the global economy.