The IMF downgraded India’s economic data quality to a “C” grade, citing reliance on an outdated 2011–12 base year. India’s Finance Minister stressed this is a technical issue, not a reflection of economic strength. Plans to rebase GDP and CPI to 2022–23 by 2026 aim to restore credibility.
India’s Finance Ministry has responded to the International Monetary Fund’s (IMF) recent rating of the country’s economic data quality, emphasizing that the downgrade stems largely from reliance on an outdated base year (2011–12). The IMF, in its annual assessment, assigned India’s national accounts a “C” grade, citing methodological weaknesses that hamper surveillance.
Key highlights from the announcement:
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The IMF noted that while India’s GDP and related statistics are timely and granular, the use of an old base year undermines accuracy.
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India’s Finance Minister clarified that this rating does not reflect the strength of the economy but rather technical statistical issues.
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The Ministry of Statistics and Programme Implementation (MoSPI) has already announced plans to rebase GDP and CPI data to 2022–23 by 2026, addressing IMF concerns.
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Despite the rating, India continues to post robust growth figures, with GDP expanding at over 8% in 2025, keeping it among the fastest-growing major economies.
This debate underscores the importance of modernizing statistical frameworks to match India’s rapidly evolving economy. The government insists that reforms are underway to ensure global confidence in its data.
Sources: Scroll.in, MoneycontrolMoneycontrol+1, Times of India, The Squirrelsthesquirrels.in, New Indian Express