Krishnamurthy Subramanian's termination was India's call, says IMF

Sources said the reasons for Subramanian's termination included alleged impropriety in using his position to promote and publicise his latest book India@100

The premature exit of Krishnamurthy Subramanian from the role of executive director (ED) at the International Monetary Fund (IMF) was a call taken by the Government of India, the Fund’s spokesperson told Business Standard on Monday. 

“The appointment and termination of any member of the executive board is a decision for member countries to make. The termination of ED Subramanian is a decision by the government of India,” an IMF spokesperson said in response to emailed queries.  “We wish him well in his future endeavors and look forward to working with his successor,” the spokesperson added. 

The Ministry of Finance did not respond to a query on the matter. 

The Appointments Committee of the Cabinet (ACC), in an order dated April 30, had decided to end Subramanian’s three-year term at the IMF that was to conclude this October, with immediate effect. 

Subramanian, who took up the IMF post in November 2022, represented India, Bangladesh, Sri Lanka, and Bhutan. The IMF’s website listed him as the executive director till May 2. 

“This is the first time that the term of an India ED at the Fund has been terminated.  Governments can usually recall a person, post them elsewhere or announce a successor early, giving a hint for them to resign,” said Subhash Garg, former secretary of 

economic affairs. 

Sources linked Subramanian’s termination to allegations of impropriety in the promotion of his recent book titled India@100, and his criticism of IMF data sets that were not received well by the institution. 

Subramanian had served as the chief economic advisor to the Government of India between 2018 and 2021. He holds a PhD in Financial Economics from the University of Chicago Booth School of Business.