IMF gives India a ‘C’ on its GDP and other national accounts data, the second-lowest grade

Overview: India has received a ‘C’ grade from the IMF for the reliability of its GDP and national accounts data. The Fund flagged issues such as outdated base years, weak deflators, and inconsistencies across GDP estimation methods. These gaps may reduce transparency and affect policy decisions, despite India submitting data on time.

Riyaz

Nov-28-2025

IMF gives India a ‘C’ on its GDP and other national accounts data, the second-lowest grade

The International Monetary Fund (IMF) has awarded India a C grade for the quality of its GDP and other national accounts data, marking the second lowest score on its four-tier scale. The assessment notes that although India reports data regularly, there are significant methodological gaps. These include outdated base years, discrepancies between production-based and expenditure-based GDP estimates, and structural limitations that reduce transparency. The IMF states that these shortcomings compromise the accuracy of economic measurement and can hinder effective policy assessment and international economic monitoring.

IMF Raises Concerns Over India’s GDP Methods, Assigns ‘C’ Grade

IMF rates national accounts data A to D.
A: means data is very reliable, up to date, and methodological.
B: means that the data is generally good and only slight attention should be taken.
C: (India grade) implies that one should exercise discretion when using data, as there exist methodological lapses and inconsistencies.
D: indicates bad data with severe shortcomings.
A ‘C shape indicates that the data of India is in a timely form, but is constrained by outdated base years, ineffective deflators, and incongruities in the approaches used to estimate GDP.

Essential IMF Facts: Quick Revision for Competitive Exams

Topic	Key Facts	Exam Asked	Year
Full Form of IMF	International Monetary Fund	SSC CGL	2018
Founded	1944 (Bretton Woods Conference)	SSC CHSL	2021
Headquarters	Washington, D.C.	RRB NTPC	2016
Started Operations	1945	SSC CGL	2017
Total Members	190+ countries	Banking (IBPS PO)	2020
India’s Membership	Founding member (1944)	UPSC Prelims	2019
Primary Functions	Monetary cooperation, financial stability, lending	SSC CGL	2022
IMF Managing Director (Post)	Frequently asked post-based question	SSC CHSL	2020
IMF Quota System	Determines voting power & access	UPSC Prelims	2021
Special Drawing Rights (SDR)	IMF’s reserve asset	IBPS Clerk	2019
IMF Data Grades (A–D)	India currently has “C” grade	SSC CGL	2023
Major IMF Reports	WEO, GFSR	SSC CGL	2020
IMF vs World Bank	Stability vs development	SSC CGL	2019

Important Expected Question about IMF

Q1. Who is the Managing Director (MD) of the International Monetary Fund (IMF) as of now?

A. Ajay Banga

B. Kristalina Georgieva

C. David Malpass

D. Ngozi Okonjo-Iweala

✔️ Correct Answer: B. Kristalina Georgieva

Q2. According to the IMF’s October 2025 update, what is India’s forecasted GDP growth for FY 2025-26?

A. 5.8%

B. 6.2%

C. 6.6%

D. 7.0%

✔️ Answer: C. 6.6%

Conclusion

The fact that India has a C grade with the IMF is the most effective data to show that there is an urgent need to enhance data quality, update their methods, and improve the transparency of the national accounts. Although India's economic performance is good, it is essential to close these statistical gaps to enhance credibility, facilitate more effective policymaking, and align with global data reporting standards.