Rapid Fire
IMF Flags Concerns over India's GDP Data
- 02 Dec 2025
- 2 min read
Why in News?
The International Monetary Fund (IMF) has retained its 'C' grade for India's national accounts and government finance data for 2025, signifying persistent methodological shortcomings that somewhat hamper accurate economic surveillance.
- IMF 2025 Assessment: The IMF's Data Adequacy Assessment rates data quality from A (adequate) to D (serious shortcomings). India's 'C' grade indicates data with shortcomings that "somewhat hamper surveillance".
- National Accounts (GDP) Weaknesses:
- Outdated Base Year: Use of 2011-12 base year misrepresents the modern economic structure.
- Flawed Deflation Method: Reliance on Wholesale Price Index (WPI) and single deflation instead of Producer Price Index (PPI) and double deflation introduces bias.
- Data Gaps: Unexplained discrepancies between production and expenditure-side GDP calculations.
- Lack of Granularity: Absence of timely, sector-wise investment data and seasonally adjusted figures.
- IMF Recommendations: Strengthen data quality by prioritising the population census, improving state-level systems, and adopting digital and high-frequency data practices.
- Ensure transparency and capacity by revising GDP and CPI regularly, establishing a Statistical Audit Authority, and increasing resources for the National Statistical Office (NSO).
- Government's Corrective Action: India is undertaking a major statistical overhaul, with a new GDP series (2022-23 base year) and CPI series (2024 base year) set for launch in February 2026.
| Read More: Concerns Related to India’s GDP Data |
