05-05-2025
Krishnamurthy Subramanian had 6 months still left in his tenure at IMF. Why did Modi govt recall him
The government is yet to announce its replacement.
Subramaniam was the Indian government's nominee on the IMF board and his tenure was to end in November. He was appointed to the position for 3 years in August 2022 and represented India, Bangladesh, Sri Lanka and Bhutan on the executive board. He took charge on 1 November that year. But in a sudden move, the government curtailed his tenure 6 months before on 30 April, with immediate effect.
New Delhi: The Modi government's decision to terminate Dr Krishnamurthy Subramanian's tenure as executive director at the International Monetary Fund (IMF) on 30 April—just days before a key meeting of the multilateral agency to decide on climate resilience loan to Pakistan—might appear abrupt. However, those in the know in the government say it did not come as a surprise to them.
While there was no official statement from the finance ministry as to the reason behind his termination, government sources said the decision to remove him followed the alleged complaints of how Subramanian misused his official position for personal gain and promote his latest book 'India @100: Envisioning Tomorrow's Economic Powerhouse'.
The book, published by Rupa Publications, delves into how India can become a $55 trillion economy by 2047.
Government sources said Subramanian not only leveraged his post to get 'undue benefits' for himself but also 'pressurised and intimidated' public and private organisations to purchase his latest book in a bid to increase its sales. Sources said Subramanian had in recent past questioned IMF datasets related to India, which had raised concern at the multilateral agency.
Subramanian was not available for comment despite repeated attempts to contact him on his mobile phone.
Government sources said, following the curtailment of his service, Subramanian resigned from his post citing personal reasons. The IMF website now lists Harischandra Pahath Kumbure Gedara as alternate director.
Prior to Subramanian, noted economist Surjit Bhalla had served as IMF executive director. Government sources said that it is extremely rare for the government to curtail the tenure of an IMF executive director like this.
Subramanian had also served as India's chief economic advisor from 2018 to 2021. He is credited for coining the term 'thalinomics' in the 2019-20 Economic Survey to show what a common person pays for a vegetarian or non-vegetarian thali, in a bid to defend the Modi-led BJP government's inflation management.
The economist had previously defended the Modi government's move in 2016 to demonetise high value currency.
(Edited by Zinnia Ray Chaudhuri)
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