K.V. Subramanian
| Photo Credit:
BIJOY GHOSH
Government has cut short the tenure of its nominee Executive Director at International Monetary Fund (IMF), K V Subramanian, with immediate effect. The former Chief Economic Advisor, Subramanian joined the multilateral agency in November, 2022.
“The Appointment Committee of the Cabinet (ACC) has approved termination of Dr Krishnamurthy Subramanian as Executive Director (India) at the International Monetary Fund with immediate effect,” an order issued by ACC, dated April 30 said. The order has not given any reason for his removal. ACC is headed by the Prime Minister.
However, sources said that his criticism about IMF data mechanism did not go well with the multilateral agency. The agency was also not very happy with his working style. Sources also said that the agency urged the government to call him back for which it agreed.
In a tweet, dated April 6, 2024, Subramanian had said: “During my tenure at @IMFNews (since Nov-22), IMF staff’s estimate of India’s growth rate has been consistently INACCURATE. While India’s growth has been >7 per cent, IMF staff estimates have all been <7 per cent. In contrast, I’ve made accurate predictions. See my Sep-21 prediction – Expect more than 7 per cent growth for India this decade: CEA Subramanian .”
Further, he wrote that actual growth in FY21-22 was 9.7 per cent, in FY22-23 was 7 per cent, and in FY23-24 (estimate) was 7.6 per cent. “The Data speaks! In contrast, check IMF staff predictions,” he said. For FY 23-24, in Nov-22 and Jan-23, IMF staff predicted growth at 6.1 per cent . In Apr-23, they lowered it to 5.9 per cent. In Nov-23, they predicted 6.3 per cent and the actual growth estimate (NSSO) for FY23-24 was 7.6 per cent; IMO, will be revised to 8 per cent.
So, IMF staff’s error margins are HUGE: 1.9 per cent in Nov-22 & Jan-23 estimates, 2.1 per cent in Apr-23 estimate and 1.7 per cent in Nov-23 estimates. Similarly, even FY23-24 growth estimates of IMF staff <7 per cent. “Data clearly shows whose prediction is more accurate! Need I say more?” he asked.
Published on May 3, 2025
