Suresh Unnithan
Thiruvananthapuram: The dismissal of Krishnamurthy V Subramanian as India’s Executive Director at the International Monetary Fund (IMF) on the last day of last month has sent shockwaves in the fiscal world. A notice issued by the government on April 30 has said, “The Appointment Committee of the Cabinet (ACC) has approved termination of Dr Krishnamurthy Subramanian as Executive Director (India) at the International Monetary Fund with immediate effect.”
Subramanian, a former Chief Economic Adviser to the Government of India from 2018 to 2021), was appointed to the IMF in November 2022 to represent India, Bangladesh, Sri Lanka, and Bhutan. His hasty dismissal, approved by the Appointments Committee of the Cabinet, chaired by Prime Minister Narendra Modi, was a surprise even to the inner circles of the government, for he was a trusted economic consultant of Prime Minister Modi.
In fact, neither the Government nor the IMF has explained the reason for Subramanian’s abrupt termination. But sources speculate that his “unwarranted” criticism of IMF Datasets has landed him in trouble. In February 2025, he and his advisors criticized the IMF’s weighted approach to ratings as “skewed” and “misleading,” which caused friction with IMF officials.
Along with this impropriety and misusing his official position for personal benefit is also reportedly attributed to him. Manipulating his office to promote and publicise a book he authored- India @ 100: Envisioning Tomorrow’s Economic Powerhouse, has also irked the IMF leadership, sources said. Such activities are considered as a potential violation of internal IMF protocols, and that could be the reason for his hasty recall, many feel.
There are speculations that Subramanian’s firm posture against IMF funding for Pakistan, particularly ahead of the crucial May 9, 2025, board meeting to review Pakistan’s debt obligations, could be another reason for his termination, sources speculate.
The timing of Subramanian’s removal, just before the IMF board meeting, and the absence of any official clarification have raised eyebrows, as it is unusual for Indian nominees to be recalled mid-term. The government is now seeking a replacement for the vacant position.
However, the Congress Party lost no time in mocking the Modi Government on Subramanian’s termination. the Kerala Pradesh Congress has dubbed the move as ‘good riddance.’
In a social media post the party said “Esteemed WhatsApp University professor, who is India’s representative at IMF, removed as Executive Director six months before his tenure ends. Remember his $55 trillion GDP calculation nonsense and defending the current GDP formula? We are glad that the government has finally realised the embarrassment he could cause, even by their standards. Good riddance! Now Mr. Subramanian can return to WhatsApp University as a full-time faculty.”
In fact, the rapid dismissal of a high-profile economist like Subramanian, could raise questions about the Modi government’s rationality in managing international appointments. This dismissal could also be described as a sign of internal discord or intolerance for dissent, particularly since Subramanian was a Modi appointee and a prominent figure in India’s economic policy circles. The lack of any proper explanation for the termination, from the government, could invite scrutiny from opposition parties.
More than that, Subramanian’s departure leaves India’s seat on the IMF board temporarily vacant, potentially weakening the nation’s influence in critical discussions, particularly those involving Pakistan’s loan related matters.
