WHY DID IMF GIVE INDIA "C" RATING? ANY TROUBLE IN INDIA?

Описание: 📉 IMF Raises Concerns Over India’s GDP Data Quality | What It Means for the Economy?

The IMF has recently flagged serious concerns about the quality of India’s GDP and growth-rate data, giving it a ‘C’ rating, the second-lowest grade in its four-tier system. According to the IMF, India still uses the old 2011–12 base year, even though the country’s consumption patterns, production structure, digital economy, and market behaviour have changed massively in the past decade.

The report highlights that India’s GDP calculation does not fully capture the unorganized sector, domestic consumption, and real-time economic activity. This leads to a large gap between production-based and expenditure-based GDP estimates.

Another major issue is that India still uses the Wholesale Price Index (WPI) to measure inflation, whereas global standards prefer the Producer Price Index (PPI) for more accuracy.

The IMF recommends updating the base year, improving data collection systems, widening the coverage of the informal sector, adopting better methods like PPI, and enhancing transparency.
However, it also acknowledges that India’s overall statistical framework remains strong in several areas.

#IMF #IndiaEconomy #GDPData #GrowthRate #IndianEconomy #EconomicAnalysis #Statistics #WPI #PPI #IMFReport #Economy2025 #IndiaGrowth #BaseYear