Saturday, March 29, 2025
In a surprising move, the Modi government has dismissed Dr. Krishnamurthy Subramanian from his role as India’s representative and Executive Director on the International Monetary Fund (IMF) Board. The decision was made before the completion of his three-year term, raising questions about the underlying reasons.
According to the IMF’s official website, Subramanian was listed as India’s Executive Director until May 2, 2025. However, from May 3, the position appeared vacant, indicating an abrupt change in India’s global financial representation.
This move comes just days before a key IMF meeting scheduled for May 9. India had objected to a proposed IMF loan for Pakistan, arguing that the funds intended for development might instead be diverted to support terrorist activities. Despite India’s strong protest, the IMF rejected the request for an immediate review. However, the matter is set to be discussed during the upcoming board meeting.
A report from Dainik Bhaskar suggests the decision to remove Subramanian stemmed from disagreements over internal IMF procedures. Specifically, he had raised concerns about the fund’s data collection methods and ratings framework, leading to friction within the organization. Sources indicate that the Indian government was also unhappy with how India’s stance was being presented at the IMF.
The decision to dismiss him was made by the Appointments Committee of the Cabinet (ACC), led by Prime Minister Narendra Modi. Subramanian was appointed to the role in August 2022 and had previously served as India’s Chief Economic Adviser.
The dismissal also aligns with heightened diplomatic tensions between India and Pakistan following a deadly terrorist attack in Pahalgam, Jammu & Kashmir, on April 22, which claimed the lives of 26 tourists. India has since urged global institutions like the IMF and World Bank to reassess aid and funding to Pakistan, citing national security concerns.
Dr. Subramanian is a renowned economist with expertise in banking, financial regulation, and corporate governance. He holds a PhD from the University of Chicago Booth School of Business, where he studied under former RBI Governor Raghuram Rajan. He is also an alumnus of IIT and IIM and has published extensively in global economic journals.
As of now, the Indian government has not named a replacement for the IMF Board Executive Director position. A new appointment is expected soon to ensure India remains actively represented in international financial discussions.
