IMF Rates India’s GDP Data ‘C’, Flags Gaps in Informal Sector Coverage

IMF Flags Weaknesses in India’s GDP Data, Assigns ‘C’ Rating for National Accounts

The International Monetary Fund (IMF) has rated India’s national accounts statistics , including GDP and GVA estimates, with a ‘C’ grade , signifying the second-lowest data reliability category. The assessment forms part of the IMF’s 2028 Article IV review , released days before India publishes its second quarter GDP figures. A ‘C’ rating indicates that the statistical base is functional but faces methodological and coverage gaps that can affect economic surveillance.

Reasons Behind the Low National Accounts Rating

While acknowledging the frequency and timeliness of data releases, the IMF highlighted persistent methodological limitations , including the outdated 2011–12 base year for GDP computation and the use of wholesale price indices in the absence of widely available producer price indices. The report also pointed to discrepancies between expenditure-based and production-based GDP estimates , suggesting underrepresentation of the informal economy and gaps in expenditure-tracking systems.

The IMF noted that granular details remain insufficient — especially the delayed breakdown of Gross Fixed Capital Formation and limited disaggregation of quarterly expenditure estimates — which restrict deeper economic insight.

Inflation Data Receives Grade ‘B’

The Consumer Price Index (CPI) was graded ‘B’ , meaning the existing system is broadly adequate but needs modernisation. The IMF observed that the CPI basket reflects consumption behaviour from over a decade ago, making inflation estimates imperfect for contemporary spending patterns. However, timely monthly release of data helped maintain the higher grade.

The Government of India is currently revising both GDP and CPI base years, with updated series expected by 2026 .

Exam Oriented Facts

• IMF gave India’s national accounts a ‘C’ grade — second-lowest category.

• GDP base year still 2011–12 ; new series expected in 2026 .

• CPI received ‘B’ rating due to outdated consumption basket and weights.

• The IMF flagged data discrepancies between expenditure and production estimates .