IMF did not question GDP growth figures: FM on lower grade on national accounts

New Delhi, Dec 3 (PTI) Finance Minister Nirmala Sitharaman on Wednesday said the International Monetary Fund (IMF) appreciated India's healthy economic performance and did not question its growth figures.

Stating that the IMF flagged an outdated base year while giving a 'C' grade to India's national accounts, including Gross Domestic Product (GDP) and Gross Value Added (GVA), Sitharaman in the Lok Sabha said that from February 27, 2026, India will move to a new base year of 2022-23 for calculating national accounts.

She was responding to NCP member Supriya Sule, who expressed concerns about IMF grades during the discussion on the Central Excise (Amendment) Bill, 2025, in the House.

The Finance Minister said that the IMF report mostly focuses on healthy economic performance.

The ratings given by the IMF are part of its report on the Indian economy, which expects India's GDP to grow at 6.5 per cent in 2025-26. It recognised the growth in the private sector, macroeconomic stability and the resilience of the Indian financial sector.

These are identified as key drivers of growth.

IMF also noted that inflation is well below the RBI's tolerance band and is projected to be 4.3 per cent for the full year, she said.

Elaborating on the reasons for the 'C' grade ranking, Sitharaman said the point of contention was the quality of data on which the 'C' grade was given. The 'C' grade is assigned to the National Accounts data because it is based on an outdated base year, 2011-12.

"However, the Government of India is now updating the base year, and from next year, the new base year will be 2022-23. This will come into effect from February 27, 2026. So, the data currently being used is based on the 2011-12 base year, and it is solely for this reason that we have been given a 'C' grade. The IMF report does not question the growth figures," she said.

The Indian economy grew at a 6-quarter high of 8.2 per cent in the July-September quarter. In the April-June quarter, the real GDP growth was 7.8 per cent.

"It (IMF) didn't question the growth figures we have given. On the contrary, they said we will be growing at 6.5 per cent. They appreciated our inflation management. So, everything belongs to data collection and keeping it to a base year, which is old and outdated," she said.

Sitharaman further said that India was rated B on all other fronts, including inflation, external sector statistics, and monetary and financial statistics.

"So, the median rate we have got is B," she said, adding that it is the same as for many developing countries, like China and Brazil.

IMF rates national accounts data of countries in A, B, C, and D, wherein A means data is adequate for surveillance, B means data has some shortcomings but is broadly adequate, C means data shortcomings could somewhat hamper surveillance, and D means serious shortcomings that hamper surveillance. PTI JD CS BAL