Even before his term ends, Krishnamurthy V Subramanian was called back from the IMF by the Indian government. It has been reported that the government called him back six months before the end of his six-year term due to controversies regarding his questioning of the IMF methodologies. The government is also reported to be finding his replacement. Reasons for his recall are not official, but he has been claimed to be questioning the methods used by the IMF, and the same has not been taken positively by the agency.
Another reason, which is claimed by the sources, is his “impropriety” while promoting his new book India @ 100. Subramaniam has served as India’s chief economic advisor and was then nominated as the ED to the IMF by the Indian government. His term of three years began in 2022.
Earlier this year, along with two other advisors in the IMF, Subramaniam called the IMF’s rating methods flawed and misleading. They also alleged that it was against “transparency,” “objectivity”, and “even-handedness.” The rumours of his recall started when the website of the IMF on 3rd May showed the position of ED for India, Bangladesh, Bhutan, and Sri Lanka as “vacant,” while the same had his name on May 2.
He was also absent from the “Investing Opportunities in India: event organised in Omaha, US by the DoorDarshi Advisors; it was later told by the hosts that he had to cancel the event due to urgent exigencies. The exit is worrying as it is just before the IMF’s meeting on 9 May, where it will be reviewing the financing facilities given to Pakistan. India is reported to oppose the extension of financing to Pakistan due to its role in terror funding, after the recent attacks in Pahalgam, where the Indian government alleges the role of Pakistani outfits.
The Executive Directors are important representatives and take care of the IMF’s functioning, and it has been seen earlier that their tenure was usually extended. The Executive Board of the IMF consists of 24 EDs from a group of countries, and it meets many times a week to ensure the proper functioning of the agency. The board makes decisions and reviews the IMF’s policy and its impact on the member countries.
