Why Krishnamurthy Subramanian Removed from IMF? Know about him and Full Controversy

Krishnamurthy V Subramanian, a well-known Indian economist, was suddenly removed from his role as India’s Executive Director at the International Monetary Fund (IMF), just six months before the end of his three-year term. This decision, approved by the Appointments Committee of the Cabinet (ACC), was made official in an order dated April 30, 2025, and became effective immediately.

Subramanian had taken on the IMF role in August 2022, officially beginning his tenure on November 1 of that year. He represented not only India but also Bangladesh, Sri Lanka, and Bhutan on the IMF’s Executive Board. Before this, Subramanian had served as India’s Chief Economic Advisor (CEA) from 2018 to 2021, a position he left to return to academia.

Who Is Krishnamurthy Subramanian?

Born on May 5, 1971, in Bhilai, Chhattisgarh, Dr. Krishnamurthy Venkata Subramanian is known for his contributions to economics, banking, and corporate governance. His academic journey began with a degree in electrical engineering from the Indian Institute of Technology (IIT) Kanpur, followed by an MBA from the Indian Institute of Management (IIM) Calcutta. He then earned a PhD in financial economics from the University of Chicago Booth School of Business.

Subramanian’s teaching career began in the United States at Emory University’s Goizueta Business School. He later joined the Indian School of Business (ISB) in Hyderabad, where he held several prominent roles, including Professor and Executive Director of the Centre for Analytical Finance. He was named “Professor of the Year” in 2019 for his excellent teaching.

Subramanian’s Tenure as Chief Economic Advisor

Subramanian was appointed as India’s CEA in December 2018, becoming the youngest person to hold this role. During his time as CEA, he wrote several Economic Surveys and introduced ideas like “Thalinomics,” which provided a new perspective on India’s economic challenges. He also proposed strategies to transform India into a trillion-dollar economy.

The Reasons Behind Subramanian’s Removal

The official reason for Subramanian’s early exit from the IMF remains unclear. However, media sources like Business Standard and The Indian Express have suggested two possible reasons for the government’s decision:

1. Disagreements with the IMF over data concerns: Subramanian allegedly raised concerns about the credibility and quality of IMF data. These objections might have caused tensions between him and officials at the IMF.
2. Promotion of his recent book: Subramanian’s book, India @ 100, which discusses India’s potential to become a $55 trillion economy by 2047, may have caused some controversy. The promotion of the book, especially while he was in a high-profile IMF role, raised questions about potential conflicts of interest.

Also Read: Union Bank Employees demand investigation into expenditure of crores of rupees of public money in purchase of Book.

What Happened After His Removal?

Subramanian’s removal became public just days before a critical IMF Board meeting on May 9, 2025, where India was expected to oppose financing for Pakistan. This timing has led to speculation about the political implications of his departure, especially considering the sensitive nature of the vote.

Additionally, Subramanian canceled a planned appearance at a US investment conference on May 2, citing an “exigency.” His name remained on the IMF website until May 3, when it was marked “vacant.”

The Unusual Timing of His Exit

It is uncommon for Indian nominees at the IMF to be recalled before their term ends. Subramanian’s predecessor, Surjit Bhalla, served a full term and was re-elected for a second term. Most Indian Executive Directors at the IMF have either completed their terms or extended them.

With Subramanian’s position now vacant, the government is expected to nominate a new representative to take over the role at the IMF.

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