India Ends Krishnamurthy Subramanian’s Term at IMF Board Ahead of Schedule

India has abruptly ended Krishnamurthy Subramanian’s tenure as Executive Director at the IMF, just six months before the scheduled end of his three-year term.

The Appointment Committee of the Cabinet (ACC) has terminated the services of Krishnamurthy Subramanian as India’s Executive Director at the International Monetary Fund (IMF) effective immediately, according to an official order dated April 30.

Subramanian, who was appointed in November 2022, was originally expected to serve until late 2025. The sudden move comes with no official explanation from the Ministry of Finance.

According to the IMF’s official website, Subramanian’s position has been marked “vacant” from May 3 onward. The role, which represents India, Bangladesh, Bhutan, and Sri Lanka, remains unfilled just ahead of a key IMF Executive Board meeting on May 9.

That meeting is expected to review funding arrangements for Pakistan. India is reportedly preparing to oppose fresh financial assistance to Islamabad, citing increased cross-border tensions and concerns over terror financing after the April 22 Pahalgam attack.

Before his appointment to the IMF, Subramanian served as India’s Chief Economic Adviser from 2018 to 2021, gaining recognition for advocating structural reforms and for his influential role in drafting key economic surveys. He succeeded economist Surjit Bhalla, who served two consecutive terms starting in 2019.

The decision to cut short Subramanian’s term just six months before completion has sparked speculation, though no formal reasons have been cited by the government.

Subramanian’s removal comes amid escalating diplomatic and military friction between India and Pakistan. New Delhi has implemented a series of punitive measures, including the suspension of the Indus Waters Treaty and border closures, following the Pahalgam terror attack that killed 26 people.

India’s stance at the upcoming IMF meeting will be closely watched, as it may mark a strategic effort to block external funding to Pakistan.

It remains unclear who will replace Subramanian as India’s representative at the IMF. The Finance Ministry has yet to issue a formal statement on the matter.

A senior official familiar with the matter said the appointment of a new Executive Director is likely to happen “soon,” given the upcoming IMF board engagements.