On April 30, 2025, The Indian government abruptly terminated Krishnamurthy V Subramanian’s tenure as India’s Executive Director at the International Monetary Fund (IMF), six months before its scheduled end. No official reason was provided, but a controversial ₹7.5 crore book deal involving Union Bank of India has fueled speculation about the motives behind his dismissal.
Subramanian, former Chief Economic Adviser (2018–2021), authored India@100: Envisioning Tomorrow’s Economic Powerhouse, published in August 2024. The Economic Times reported that Union Bank pre-ordered 189,450 paperback and 10,422 hardcover copies, costing ₹7.25 crore, for distribution to customers, schools, and libraries. This bulk purchase, initiated before the book’s release, triggered internal backlash and allegations of impropriety.
The timing of Subramanian’s recall, days before an IMF meeting on a $1.3 billion loan to Pakistan, suggests geopolitical factors. India opposed the loan, citing terror-financing concerns post the Pahalgam attack. Subramanian’s reported critiques of IMF datasets may have strained relations with the agency, aligning with India’s strategic stance but possibly prompting his exit.
The book deal’s scale is unprecedented in India’s publishing market, where English-language books rarely exceed 10,000 copies. The ₹3.5 crore advance to Rupa Publications and lack of board approval raised governance concerns. Union Bank admitted “lapses,” suspending a general manager and engaging KPMG for a forensic review, indicating internal mismanagement.
Congress alleged the purchase was “blatant propaganda” to promote Subramanian’s pro-government narrative, questioning public fund misuse. Claims of an “indirect bribe” linked to the bank CEO’s extension add to the controversy, suggesting deeper political motives.
Subramanian’s vocal defense of Modi’s policies, including his disputed V-shaped recovery claim during COVID, made him a polarizing figure. His book’s alignment with BJP’s economic vision may have amplified scrutiny.
The IMF clarified the decision was India’s alone, but Subramanian’s silence and the vacant IMF seat signal reputational damage. The saga underscores the need for transparent public spending and robust oversight in public sector banks.