IMF ‘C’ Grade for India’s National Accounts Data
Why in the news
The IMF’s data adequacy rating for India’s national accounts is ‘C’, meaning data weaknesses somewhat hamper its economic surveillance. An upgrade is expected after new GDP and CPI series arrive.
Key facts
| Item | IMF grade | Meaning |
|---|---|---|
| National Accounts Statistics | C | Regular data, but methodological gaps limit comparability and surveillance |
| Consumer Price Index | B | Broadly adequate, some shortcomings |
- Scale: four-tier Data Adequacy Assessment (DAA); C is second-lowest.
- India’s C has held for two years (2024-25); an upgrade is expected in early 2026.
Why ‘C’
- Old base year 2011-12 for GDP and CPI.
- WPI as deflator since no comprehensive Producer Price Index exists, weakening real GDP.
- Persistent production versus expenditure gaps, from expenditure undercoverage and a large informal sector.
- Weak seasonal adjustment in quarterly GDP; need for better modelling.
About National Accounts Statistics
- Published by MoSPI; follows UN SNA-2008.
- Income approach is primary; expenditure approach is supplementary; sectoral GVA across agriculture, industry, services at 2011-12 constant prices.
- Indicators: GDP and GVA, consumption, gross capital formation, savings and investment rates, national and per-capita income.
Upcoming revisions
- GDP base moves to 2022-23, first revision since 2015; CPI base to 2024.
- Double deflation using producer price indices and new data sources for quarterly GDP.
- Launch expected February 2026.
- Balance of payments data now comes two months after the quarter (from Q1 FY26); a monthly BoP series by RBI is planned.
IMF suggestions
- Hold a population census (last data 2011-12).
- Timely consolidated government fiscal accounts.
- Wider NBFC data and better systemic financial linkage data.
Exam angle
- Publisher of NAS: MoSPI.
- New GDP base year: 2022-23; new CPI base: 2024.