Mr Bhalla was earlier a key member of the Prime Minister Narendra Modi's Economic Advisory Council.

The Indian government has appointed economist Surjit S Bhalla as the executive director of the International Monetary Fund (IMF) for a period of three years.

An Appointments Committee of the Cabinet (ACC) order said that Bhalla would hold the position for three years from the date of assuming the charge.

"The Appointments Committee of the Cabinet has approved the appointment of Dr Surjit S Bhalla, Economist, as Executive Director (India), International Monetary Fund for a period of three years from the date of assumption of the charge of the post or until further orders whichever is earlier," a government order said.

The key post of Executive Director at the multilateral agency had fallen vacant after the death of Dr Subir Gokarn in July this year.

Mr Bhalla was earlier a key member of the Prime Minister Narendra Modi's Economic Advisory Council.