Why IMF says India's GDP data is C-grade

The International Monetary Fund (IMF) has rated India's national account statistics as C-grade, raising questions about what the GDP numbers really mean. Ongoing reforms can enhance data accuracy & international credibility, strengthening the foundation for evidence-based policymaking, explains KR Shanmugam

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IN ITS 2025 staff report on India, the IMF assigned India a C-grade for its national accounts statistics, while awarding B-grade for prices, external statistics, government finances, and monetary and financial data.

The C-grade indicates that although data exists, it suffers from deficiencies like an outdated 2011-12 base year used to calculate gross domestic product (GDP) and gross value added (GVA), reliance on the wholesale price index (WPI) instead of a comprehensive producer price index (PPI), use of single rather than double deflation, gaps between production and expenditure-side estimates, inadequate coverage of the informal sector, an outdated consumer price index (CPI) basket, and delays in publishing consolidated central and state fiscal data. These shortcomings “somewhat hamper surveillance.”

While annual and quarterly revisions incorporate updated information without using any new data source to ensue strict comparison over years, base-year revisions—guided by international standards—allow conceptual improvements and the use of new data sources.

How does the IMF assign grades?

THE IMF PROVIDES country-specific advice through bilateral surveillance and monitors global economic and financial developments through multilateral surveillance. These exercises assess how a country's policies influence others through economic spillovers.