New Delhi (04.05.2025): India’s abrupt move of recalling its Executive Director at the International Monetary Fund (IMF) for India, Bangladesh, Bhutan and Sri Lanka. Termination of services Dr Krishnamurthy V Subramanian days before the crucial IMF Board meeting scheduled on 9th May and six months before the completion of his three-year term drew the attention of who’s who in India but globally as well.
Aberrant departure?
It’s rare and aberrant for Indian nominees at the IMF to be recalled mid-term as almost all his predecessors either served for a full term or were re-elected for a second cycle.
Though the government would not reveal reasons against its move officially, yet sources have broadly three theories to speculate over.
IMF’s apprehension:
Another section of sources understands that in the Board meeting of IMF, India is expected to oppose further fresh financing to Pakistan in the backdrop of the Pakistan-sponsored terror attack in Pahalgam that killed 26 tourists. IMF Board endorses the policy prescriptions and approves funding. This section assumes that Subramanian was supposed to raise concerns about the credentials of IMF datasets which the stakeholders at the Washington-based multilateral agency wouldn’t have received well.
India@100: Impropriety Vs discomfort
Another section of sources says that the zeal of Dr Subramanian’s book would have made multilateral agencies zealous of India’s growth prospects. It is also speculated that the IMF platform was inappropriately used by him to promote and publicising his book “India@100”. But this theory does not hold much weight as a reason for his removal. Whatever could be the truth, the author has argued that India with a projected growth of eight per cent annually would make India a $55 trillion economy by 2047. A section of sources says that the portrayal of India's brighter prospects would have created discomfort for the stakeholders at the IMF thus making the impropriety angle crucial.
IMF requested his recall?
Those believing in the above-said theories say that the International Monetary Fund itself would have requested the Govt of India for Dr Subramanian's recall.
Not a rare move: ED, World Bank recalled in Feb 2023:
While terming Dr. Subramanyam’s termination prematurely the rarest one, very few would have recollected that in the recent past also India had prematurely recalled Rajesh Khullar (Retd IAS: 1988: HY) as ED, World Bank. He was recalled in February 2023; over six months ahead of the completion of the three-year tenure in September 2023. Then, the abrupt decision on Khullar remained unexplained until the then Niti Ayog CEO Parameswaran Iyer (Retd IAS: 1981: UP) was placed at the World Bank vice Khullar. On his premature repatriation, Rajesh Khullar was duly appointed as Chief PS to Haryana CM and continues as the post-retirement prize posting till date. In the current context, one should not presume that Dr. Subramanian would have fallen out of sync with the establishment. One can not rule out the possibility that the New Delhi establishment would have cleared the deck for nominating a senior IAS officer.
Dr. Subramanian’s successor at IMF?
The government is now expected to nominate a new representative for the vacant ED position at IMF. Sources say that Dr Subramanian’s successor could be someone from the 1987 batch awaiting retirement or someone from the junior batches. The New Delhi dispensation would keep its next move close to its chest.
(By Rakesh Ranjan)
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