IMF gives India 'C' grade on economic data quality

ISLAMABAD: The International Monetary Fund (IMF) has assigned India a 'C' grade for its national accounts and government finance data in its 2025 Data Adequacy Assessment, marking the second consecutive year the country has received this rating. 

The grade indicates that India's economic statistics contain shortcomings that hamper effective surveillance and analysis.

What does a 'C' grade mean?

The 'C' rating signifies that the data provided to the IMF "have some shortcomings that somewhat hamper surveillance." 

The rating places India below the 'A' (adequate) and 'B' (broadly adequate) categories, suggesting that persistent issues make it challenging for economists, investors, and policymakers to obtain a completely accurate and timely picture of the Indian economy.

The report cites several reasons for the rating, including the use of an outdated base year, flawed deflation calculation methods, and a lack of government finance statistics.

'Numbers remain disappointing'

The report has attracted opposition criticism from the Bharatiya Janata Party (BJP)-led Indian government. 

Congress leader Jairam Ramesh, the party's general secretary in charge of communications, wrote on X that “the economic numbers remain disappointing.”

The government is understating inflation to make GDP growth appear better, he said.

'Huge concern'

Opposition politicians are not the only ones calling out the government for the 'C' grade report. 

Writing for The Wire, economist Arun Kumar, a former professor at Jawaharlal Nehru University, New Delhi, called the C-grade rating a "huge concern," noting that GDP data have been in disrepute since the 2011-12 series was introduced. 

Both Kumar and Pronab Sen, India's former chief statistician, said India's GDP is "less than reliable," with problems arising from how India estimates the unorganized sector, according to The Wire.

On the other hand, BJP leader Meenakashi Lekhi, quoted by The Print, dismissed the opposition's focus on the C-grade as "cherry-picking" and spinning a narrative to destabilize India.

The opposition's use of the IMF rating, he said, appears to be part of a broader critique of the government's credibility in its economic data and statistical methodology.