Six month left, Krishnamurthy Subramanian's term cut short at IMF

Don't want to miss the best from Business Standard?

The government has ended the term of its nominee Executive Director at International Monetary Fund (IMF) Krishnamurthy Subramanian with immediate effect, according to an order by the Appointments Committee of the Cabinet (ACC). He was appointed as India’s Executive Director at the IMF in 2022 for a term of three years.

 

The order dated April 30, 2025 said, “The Appointments Committee of the Cabinet has approved termination of services of Dr. Krishnamurthy Subramanian as Executive Director (India) at the International Monetary Fund with immediate effect.”

 

Sources said that the reasons for Subramanian’s termination included alleged impropriety over the use of his position for promotion and publicity of his latest book India@100.

 

Sources said that Subramanian is learnt to have raised questions about IMF’s datasets which were not well received at the IMF. 

 

Sources also said that the government had started the process to identify his successor for the IMF Board.

 

Subramanian, who took up the IMF post in November 2022, represented India, Bangladesh, Sri Lanka, and Bhutan. As of May 3, the IMF’s website lists the position as vacant.

 

Subramanian served as the Chief Economic Adviser (CEA) to the government of India from 2018 to 2021. He holds a PhD in financial economics from the University of Chicago Booth School of Business.  

Key IMF vote ahead

  The Indian vote at the crucial board meeting of the IMF on Pakistan on May 9 will be exercised by Parameswaran Iyer, Executive Director (India) at the World Bank. This has become necessary as Krishnamurthi Subramanian, who was the Executive Director for India has been recalled despite six months of his three year term still remaining. 

 

A top government source confirmed that Iyer will sit in the IMF meeting that will decide on a fresh tranche of loan for Pakistan under the 37 month Extended Fund Facility support of $7 billion. 

 

Subramanian’s sudden departure has raised eyebrows. The order issued by the Appointments Committee of the Cabinet on 30th April simply noted that it has “approved termination of services of Dr Kirhnamurthy Subramanian as Executive Director (India) with immediate effect”. The IMF website has been updated to show the vacancy with Harischandra Pahath Kumbure Gedara listed as Director Alternate representing India, the countries Bangladesh, Nepal, Bhutan and Sri Lanka. 

 

Messages including an email sent to Subramanian from Business Standard remained unanswered at the time of filing this report. Subramanian was the Chief Economic Advisor for three years in the Finance Ministry from December 2018 to December 2021.