IMF Announces Krishnamurthy Subramanian's Departure Amid Revised Economic Forecasts

Krishnamurthy Subramanian's tenure as Executive Director (India) at the IMF has ended, according to a government statement. Concurrently, the IMF lowered India's growth projection to 6.2% for fiscal year 2025-26, citing trade tensions and domestic challenges, as per its latest World Economic Outlook report.

The government has announced the termination of Krishnamurthy Subramanian's role as Executive Director (India) at the International Monetary Fund (IMF). This decision comes as indicated by an official order released on Friday, April 30, 2025. Subramanian had been in this position since August 2022 and previously served as Chief Economic Advisor to India between 2018 and 2021.

This development coincides with the IMF's recent downward revision of India's economic growth forecast for the fiscal year 2025-26, now predicted at 6.2%. The global financial institution attributes this cautious outlook to ongoing global trade disruptions and domestic challenges, as detailed in their April World Economic Outlook report. This revision affects nearly all major global economies, according to the IMF's analysis.

While the IMF's report acknowledges a relatively stable growth in India's economy, driven significantly by private consumption, particularly in rural areas, these projections have decreased by 0.3 percentage points since their initial January 2025 estimate. This reassessment follows heightened trade tensions and the accompanying uncertainties that have also impacted global markets.

(With inputs from agencies.)