IMF Assigns India a ‘C’ Grade for Its GDP and National Accounts Data, the Second-Lowest Rating.

India’s latest annual assessment by the International Monetary Fund places the country’s national accounts statistics in the ‘C’ category, signalling persistent methodological issues ahead of the release of Q2 financial year data on 28 November 2028. The evaluation highlights concerns about base-year relevance, statistical techniques, and discrepancies across GDP measurement approaches.

IMF Assessment of National Accounts

The IMF states that India’s national accounts data are timely and sufficiently frequent but affected by methodological shortcomings. The use of an outdated 2011-12 base year and limited producer price indices continues to constrain data accuracy. These issues affect the interpretation of key indicators such as GDP and GVA.

Discrepancies in GDP Measurement Approaches

The review notes “sizeable discrepancies” between the production and expenditure approaches to estimating GDP. India principally uses the income approach but publishes expenditure-based estimates as well. Differences in data sources and coverage often lead to gaps between these figures, particularly regarding the informal sector and expenditure mapping.

Limitations in Statistical Techniques

The IMF highlights the absence of seasonally adjusted quarterly data and urges improvements in statistical methods. It also calls for greater disaggregation of Gross Fixed Capital Formation by institutional sector and more detailed quarterly estimates to enhance economic trend analysis.

Exam Oriented Facts

• IMF grading scale ranges from A to D, with India receiving a ‘C’ for national accounts.
• The current GDP and CPI series use the 2011-12 base year.
• India plans to release updated GDP and CPI methodologies by 2026.
• Overall Indian statistics received a ‘B’ grade across major data categories.

IMF Review of Inflation and Other Statistical Domains

India’s Consumer Price Index was graded ‘B’, with concerns centred on an outdated consumption basket and weight structure. Government finance data, external sector statistics, monetary indicators, and inter-sectoral consistency all received ‘B’ grades. The IMF observes that weaknesses in national accounts remain largely unchanged from the previous year but acknowledges that reforms to strengthen real sector statistics are progressing.