IMF Gives India’s GDP Data a ‘C’ Grade, Flags Major Gaps

The International Monetary Fund (IMF) has assigned a ‘C’ grade — its second-lowest — to India’s national accounts data, which include Gross Domestic Product (GDP) and Gross Value Added (GVA), citing shortcomings that hinder effective economic assessment.

The review noted that while national accounts data are released regularly, there are “methodological weaknesses” that affect their reliability for economic assessment, that affect the reliability and clarity of economic measurement.

India’s overall statistical rating is ‘B’ across all data categories — with available grades being A, B, C, and D. The IMF raised concern over the outdated 2011-12 base year used to calculate GDP and GVA and the dependence on wholesale price indices due to a lack of producer price indices.

The report highlighted “sizeable discrepancies” between GDP estimates derived from production and expenditure approaches, suggesting gaps in informal sector coverage and expenditure data.

The IMF also flagged the absence of seasonally adjusted GDP data and urged improvements in statistical methods and deeper data breakdowns. It rated the Consumer Price Index (CPI) at ‘B’, noting the inflation basket is outdated and “likely fails to accurately represent current spending habits.”

According to The Hindu, the government is updating GDP and CPI base years, with revised series expected by 2026, though data weaknesses remain largely unchanged from last year.