The Indian government has suddenly removed Krishnamurthy Subramanian from the IMF board. His removal comes six months before his term was due to end.
Dismissal Comes Just Before Crucial IMF Meeting
Interestingly, this move happened just days before an important IMF board meeting. The meeting is set to approve a $1.3 billion climate loan to Pakistan. Moreover, the government has increased pressure on global institutions like the World Bank and Asian Development Bank. It wants them to stop financial aid to Pakistan.
Subramanian’s Disputes with IMF Sparked Tensions
According to government sources, Subramanian questioned IMF data during internal discussions. As a result, tensions rose between him and the IMF. This was reportedly the latest in a series of disagreements.
Allegations Over Book Promotion Add to Trouble
In addition, Subramanian faces allegations related to promoting his book, India @100: Envisioning Tomorrow’s Economic Powerhouse. Officials accuse him of using his IMF position for self-promotion.
Government Yet to Name Successor
So far, the government hasn’t appointed a new executive director. However, Finance Secretary Ajay Seth is a likely candidate. He is set to retire in June and could take the role.
Subramanian had started his IMF tenure in November 2022. He was appointed for a three-year term. The position represents India, Bhutan, Bangladesh, and Sri Lanka. Now, the post is listed as vacant on the IMF website. Harischandra Pahath Kumbure Gedara remains the alternate director.
Subramanian Returned from Academia for IMF Role
Earlier, Subramanian served as Chief Economic Adviser to the Indian government. He stepped down in 2021 and returned to academic work. However, just eleven months later, he moved to Washington to join the IMF. Notably, the IMF had disapproved of some of his past comments.
