The IMF has made an important comment regarding the Indian economy
The International Monetary Fund (IMF) has issued a significant comment regarding the Indian economy. In its annual review, the IMF cited serious deficiencies in India’s national accounts data, giving it a ‘C’ grade. This is considered the second-worst level when it comes to data quality.
The IMF’s comments come as the Indian government is set to release its GDP figures for the second quarter of this financial year today, 28th November. It is estimated that the Indian economy could grow by around 7 percent.
IMF Statement: According to a report in The Hindu, the IMF has identified some deficiencies in the available data. According to the IMF Article IV (Assessment of Economic Framework), India’s national accounts data are timely and provide adequate information.
However, due to deficiencies in the methodology used to derive them, the Indian national accounts data has been given a C grade. The IMF also gave the Consumer Price Index (CPI) a B grade, the broadest indicator of inflation in India. Overall, the IMF has given all data categories a B grade.
