Former Chief Economic Adviser removed six months before term ends amid rising tensions with IMF
In a surprising move, the Indian government has recalled Krishnamurthy Subramanian, its nominee on the board of the International Monetary Fund (IMF), well before the scheduled end of his three-year term. The decision comes just days ahead of a key IMF board meeting to approve a $1.3 billion climate resilience loan to Pakistan, which India has been actively opposing at global financial platforms, reported timesofindia.indiatimes.com.
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Subramanian had previously served as India’s Chief Economic Adviser (CEA) before stepping down in 2021 to return to academia
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His later appointment to the IMF role raised eyebrows, and his statements have occasionally irked the global lender
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Recall comes amid fray over IMF data, book promotion allegations.
Sources say Subramanian’s abrupt removal stems from ongoing friction with the IMF, including his recent questioning of its datasets. Allegations of impropriety in promoting his book India @100: Envisioning Tomorrow’s Economic Powerhouse have also surfaced, raising further concerns.
Subramanian, who took up the IMF executive director role in November 2022, was expected to serve a full term until late 2025. The post represents India along with Bhutan, Bangladesh, and Sri Lanka. It is currently listed as vacant on the IMF’s official website, with Harischandra Pahath Kumbure Gedara named as the alternate director.
Ajay Seth likely to succeed as government ramps up pakistan pressure.
While the government has yet to officially name a successor, Finance Secretary Ajay Seth is widely considered the frontrunner. His retirement in June could align with the transition. The timing of Subramanian’s removal appears strategic, as India continues to pressure multilateral institutions like the World Bank, IMF, and Asian Development Bank (ADB) to halt financial assistance to Pakistan.
