IMF’s C grade: Why doubts over our rapid growth are misplaced

The rating relates to measurement tools that haven't kept pace with India's fast-evolving economy

- AKASH P. POOJARI

Every quarter's gross domestic product (GDP) data release cycle sees a familiar question resurface: Can we trust India's GDP numbers? The question has been raised often enough to become a ritual.

This time, attention was also drawn to the grading embedded in the latest International Monetary Fund (IMF) Article IV assessment of India, with the economy's 8.2% growth in the second quarter of 2025-26 placed in contrast with the 'C' rating assigned to our national accounts statistics.

This rating has been picked up by many to cast doubts on the validity of India's growth numbers and hint at inflated figures. Opinions on India's economic reality cite the IMF's C grade as evidence of a disparity between what the data suggests and what pundits believe is the lived experience of the average Indian. However, delving into the actual assessment reveals a degree of nuance that is often missed by critics.

The IMF's scorecard is not accusing India of inflating its numbers; it is signalling that our statistical machinery hasn't fully kept pace with the structure of the modern economy. In other words, the concern is less about credibility and more about completeness. And that has consequences for how we interpret the readings.