KV Subramanian's IMF Exit: Book Deal Scandal and Geopolitical Ripples

The Indian government abruptly ended Krishnamurthy V Subramanian’s tenure as India’s Executive Director at the International Monetary Fund (IMF), six months ahead of schedule. While no official reason was given, a controversial ₹7.5 crore book deal with Union Bank of India has fueled intense speculation and debate regarding the underlying motives.   

Subramanian, who served as India’s Chief Economic Adviser from 2018 to 2021, authored India@100: Envisioning Tomorrow’s Economic Powerhouse, published in August 2024. The Economic Times reported that Union Bank of India controversially pre-ordered a massive 189,450 paperback and 10,422 hardcover copies, totaling ₹7.25 crore. This bulk purchase, intended for distribution to customers, schools, and libraries, was initiated even before the book's official release, sparking immediate internal backlash and allegations of impropriety.   

The timing of Subramanian’s recall, occurring just days before an IMF meeting on a critical $1.3 billion loan to Pakistan, strongly suggests geopolitical factors at play. India has vocally opposed this loan, citing deep concerns over terror financing, particularly in the aftermath of the recent Pahalgam attack. Subramanian’s own reported critiques of IMF datasets may have further strained relations with the agency, aligning with India’s strategic stance but potentially contributing to his abrupt departure.   

The scale of the book deal is unprecedented in India’s English-language publishing market, where print runs rarely exceed 10,000 copies. The ₹3.5 crore advance paid to Rupa Publications, coupled with the apparent lack of necessary board approval for the Union Bank purchase, has raised significant governance concerns. Union Bank has acknowledged "lapses," suspending a general manager and initiating a forensic review by KPMG, indicating internal mismanagement and potential irregularities.   

The Opposition Congress party has seized upon the controversy, alleging the purchase was "blatant propaganda" to promote Subramanian’s pro-government narrative and questioning the misuse of public funds. Claims of an "indirect bribe" linked to the bank CEO’s extended tenure further deepen the political implications, suggesting motives beyond simple impropriety.   

Subramanian himself has been a polarizing figure, known for his vocal defense of Modi’s economic policies, including the widely debated "V-shaped recovery" claim during the COVID-19 pandemic. His book’s alignment with the ruling BJP's economic vision likely amplified scrutiny and public interest in the peculiar transaction.