India gives Eurozone $10bn aid

New Delhi: India on Tuesday committed to extend a $10 billion (over Rs 55,000 crore) lifeline to help ailing Eurozone countries grappling with sovereign debt crisis, which has slowed down the global economy. 

    Prime Minister Manmohan Singh announced India's contribution to the International Monetary Fund's (IMF) $456 billion bailout corpus at the G-20 summit at the Mexican resort of Los Cabos. India's commitment is part of the BRICS funding estimated to be around $75 billion, out of which China's contribution will be $43 billion. While Brazil and Russia too pledged $10 billion each, South Africa offered $2 billion. 
    This is the second time in less than ayear that India has decided to chip in with a generous dose of funding. Last year, it got Parliament to approve a Rs 9,000-crore contribution towards the IMF's New Arrangements to Borrow, a funding tool meant to provide a lifeline to beleaguered economies. Typically, funding from multilateral agencies is at highly concessional rates but comes with riders linked to reforms. 
    In this year's Budget, the finance ministry got parliamentary approval to invest Rs 56,500 crore in global financial institutions which, officials said, would be used to raise India's voting rights in multilateral bodies like the IMF. For a few years, BRICS members have been demanding a greater say in managing the affairs of the IMF and the World Bank to reflect their growing clout in the global economy.