Cabinet terminates former Chief Economic Advisor’s IMF role amid global economic uncertainty; IMF revises India’s FY26 growth forecast to 6.2%.
New Delhi, May 4:
The Government of India has terminated the services of Dr. Krishnamurthy Subramanian as Executive Director (India) at the International Monetary Fund (IMF), with immediate effect. The decision was confirmed via an official order issued by the Appointments Committee of the Cabinet, dated April 30, 2025.
“The Appointments Committee of the Cabinet has approved the termination of services of Dr. Krishnamurthy Subramanian as Executive Director (India) at the International Monetary Fund with immediate effect,” read the statement from the Ministry of Personnel.
Dr. Subramanian was appointed to the IMF post in August 2022, after previously serving as the 17th Chief Economic Advisor (CEA) to the Government of India between 2018 and 2021.
India’s Growth Outlook Trimmed by IMF
The announcement comes shortly after the IMF downgraded India’s economic growth forecast for FY 2025-26 to 6.2%, in its April 2025 World Economic Outlook report. This marks a 0.3 percentage point decline from its January estimate, reflecting a more cautious stance amid global trade tensions and domestic headwinds.
The multilateral body cited reciprocal trade tariffs involving the U.S., global uncertainty, and fragile private investment as key factors behind the revised projection. However, it noted that rural consumption remains a supporting pillar for India’s economic momentum.
Despite the downgrade, India continues to be among the world’s fastest-growing large economies, with stable fundamentals and resilience in household demand.
Background: Subramanian’s Tenure
Known for his academic grounding and sharp policy advocacy, Dr. Subramanian played a key role during India’s post-COVID economic recovery as CEA. His transition to the IMF in 2022 was seen as part of India’s push for greater influence in global financial institutions.
No official reason has been given for his termination from the IMF position.