Will India Support Lagarde for IMF Job?

Without going into the pros and cons of supporting Lagarde for the top IMF job, in all likelihood she is going to get the unannounced support from India. This point also gains credibility as Finance Minister Pranab Mukherjee stated that he would even talk to Mexico’s central bank governor, Agustin Carstens, to dissuade him from contesting and build a consensus around Lagarde. New Delhi’s decision to support Lagarde is based on the fact that India enjoys good relations with France, a major power in Europe. Not to forget International monetary fund (IMF) holds key to low rate loans for world countries.

Lagarde, on a day’s visit to India, met Finance Minister Pranab Mukherjee today and got a favourable response. Publically FM has kept a diplomatic answer for the media as he stated that that he do not want to provide any assurance. We are working on a consensus. After the meeting Lagarde stated that they had an excellent meeting and they were able to review quite a few issues.

Even Montek Singh Ahulwalia, India’s candidate also aspired to become the IMF candidate; however he was disqualified for being above the maximum cut-off age and is also a personal friend of the French candidate and thus it likely to be a cent percent positive backing for Lagarde with positive results from India.

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