In a surprising turn of events, the Indian government has prematurely ended the tenure of Dr. Krishnamurthy V. Subramanian as the Executive Director representing India at the International Monetary Fund (IMF), roughly six months before the official end of his three-year term.
Sources familiar with the matter confirmed the development on Saturday, stating that the decision was taken by the Appointments Committee of the Cabinet (ACC), which oversees senior bureaucratic postings in the country.
As per the official communication, Dr. Subramanian’s services will be deemed terminated with effect from April 30, 2025, well ahead of the previously scheduled conclusion of his assignment on October 31, 2025.
\The government has yet to issue a formal explanation regarding the rationale behind this unexpected decision, leaving room for speculation within policy and diplomatic circles.
Dr. Subramanian, a distinguished economist and academic, was appointed to the high-profile role at the IMF in November 2022. His term was initially slated for three years.
Before his posting at the Washington, D.C.-based financial institution, he served as India’s Chief Economic Adviser (CEA) from 2018 to 2021, during which he played a key role in shaping the country’s macroeconomic policy during a particularly turbulent period marked by the COVID-19 pandemic.
According to reliable sources, tensions may have been brewing between Subramanian and the IMF. It is understood that he raised critical questions regarding the credibility and methodology of certain datasets maintained by the IMF, which reportedly did not sit well with senior officials within the multilateral financial agency.
While the precise nature of these objections remains undisclosed, such challenges to internal processes can be sensitive and politically fraught in diplomatic and economic institutions of this stature.
In addition, the sources indicated that concerns had been raised about an alleged impropriety involving the promotion of Dr. Subramanian’s latest book, titled India @ 100.
The promotional activities, according to unconfirmed reports, may have crossed the lines of established norms for someone holding a diplomatic or quasi-diplomatic international posting. However, no official misconduct has been cited publicly, and the government has not provided any details that directly link the book promotion to the decision to end his tenure.
The Indian government is now expected to initiate the process of nominating a new candidate to represent the country on the IMF Executive Board. India occupies a significant seat in a four-country constituency at the IMF, grouped with Bangladesh, Sri Lanka, and Bhutan.
The Executive Board of the IMF consists of 25 Executive Directors who represent the collective interests of the IMF’s 190 member countries and play a crucial role in overseeing the day-to-day operations of the Fund, including decisions on financial assistance, surveillance, and policy advice.
This early exit of a high-ranking Indian official from such a prestigious global role may also have broader diplomatic implications. It remains to be seen how the government navigates the transition and who it selects as Subramanian’s successor to represent India and its regional partners at a time of global economic volatility and reform discussions within the IMF.
Observers are keenly awaiting an official clarification from the Ministry of Finance or the External Affairs Ministry on the developments surrounding Subramanian’s departure. Until then, speculation is likely to continue, especially considering his previous stature and vocal positions on economic reforms both in India and on global platforms.