Finance Minister Nirmala Sitharaman provided a crucial clarification in the Lok Sabha on Wednesday, asserting that the International Monetary Fund (IMF) has not questioned India's economic growth figures. She explained that the 'C' grade assigned by the Fund to India's national accounts is solely attributed to the use of an outdated base year for data calculation.
Outdated Base Year Behind IMF's Statistical Rating
Responding to concerns raised by NCP MP Supriya Sule during a discussion on the Central Excise (Amendment) Bill, 2025, Sitharaman detailed the context of the IMF's assessment. The Minister stated that India currently relies on the 2011-12 base year for its national accounts data, which the IMF has flagged as outdated. This, she emphasized, is the singular reason for the 'C' categorization under the Fund's Data Standards Initiatives.
Sitharaman announced a significant update to address this concern: India will shift to a new, updated base year of 2022-23 for its national accounts starting February 27, 2026. This move is expected to resolve the statistical parameter issue highlighted by the IMF.
IMF Report Highlights Robust Growth and Stability
The Finance Minister underscored that the IMF's report overwhelmingly focuses on India's strong economic prospects. The Fund has projected India's GDP to expand by 6.5 per cent in the fiscal year 2025-26. It has identified key drivers of this growth, including vibrant private-sector activity, sustained macroeconomic stability, and the resilience of the financial sector.
Furthermore, the IMF acknowledged India's effective inflation management. It noted that inflation remains below the Reserve Bank of India's (RBI) upper tolerance band and projected an average inflation rate of 4.3 per cent for the full year. "They appreciated our inflation management," Sitharaman told the House, reiterating that the IMF did not question the domestic growth figures.
Strong Performance Across Other Parameters
Sitharaman provided a broader perspective on India's IMF ratings. She revealed that India received a 'B' grade on all other major statistical fronts. This includes data for inflation, external-sector statistics, and monetary and financial statistics.
"So, the median rate we have got is B," the Minister said, adding that this places India in line with other major economies like China and Brazil. The IMF's grading system ranges from A to D, where 'A' indicates data fully adequate for surveillance, 'B' means broadly adequate with minor shortcomings, 'C' suggests shortcomings that could somewhat hamper analysis, and 'D' signals serious impediments.
Citing recent domestic performance, Sitharaman highlighted that the Indian economy grew by a robust 8.2 per cent in the July-September quarter of the current fiscal year, marking a six-quarter high. This followed a growth of 7.8 per cent in the April-June period, underscoring the economy's underlying momentum.
