Parameswaran Iyer, Executive Director at the World Bank, has been appointed as India’s nominee director on the IMF Board, replacing K.V. Subramanian, whose tenure was terminated six months early. His appointment comes ahead of the May 9 IMF Executive Board meeting, where key financial decisions—including a $1.3 billion climate resilience loan and the first review of Pakistan’s $7 billion bailout package—will be discussed.
The Appointments Committee of the Cabinet terminated K.V. Subramanian’s services effective April 30, 2025. While the official reasons for his exit have not been disclosed, sources suggest that Subramanian had raised concerns about the IMF’s datasets, which reportedly did not sit well with the multilateral agency. Additionally, there were allegations of impropriety related to the promotion of his book, India@100: Envisioning Tomorrow’s Economic Powerhouse.
Had India not nominated Parameswaran Iyer, the alternate executive director Harischandra Pahath Kumbure Gedara of Sri Lanka would have taken over the role, as per IMF rules. India’s decision to appoint Iyer is seen as a strategic move, especially given the regional and geopolitical implications of the upcoming IMF discussions.
Iyer, a 1981-batch IAS officer, has held key roles in domestic policymaking and international finance institutions. He previously served as CEO of NITI Aayog, where he played a crucial role in launching initiatives like the State Support Mission and the Aspirational Block Program. Before joining the World Bank, he was instrumental in accelerating the implementation of India’s PLI scheme, aimed at creating global manufacturing champions.
India’s nomination of Iyer signals the importance it attaches to the upcoming IMF discussions, particularly in light of Pakistan’s financial situation and India’s diplomatic stance.
