Why did IMF give India-Pak the same ‘C’ grade?:Opposition questioned 8.2% GDP growth; are the figures really flawed?

Imagine you are in school and your report card has arrived. You got a C in Math, but a B in other subjects… meaning you passed, but there is room for improvement. Exactly this has happened with India’s economy. On November 26, the IMF gave India’s GDP data a ‘C’ grade. The very next day, on November 27, the government released the GDP figures for Q2, i.e., July-September 2025. It was stated that our country’s economy grew at a rate of 8.2% in the second quarter. This is more than everyone’s estimates, and it is also the fastest-growing economy in the world. Now opposition parties are raising questions, citing the IMF report. They are saying that the GDP growth figures are not reliable. It is also worth noting here that in the report on Pakistan’s economy that came out in 2024, our neighboring country also received a C grade. That is, the IMF believes that the official data of both India and Pakistan have similar shortcomings. In this news article, let’s understand if there is really some discrepancy in the GDP figures. What does the IMF’s C grade mean? Is it right for India and Pakistan to get the same rating? First, look at these 2 tables… Analysis of IMF report in three points To get an A grade, three things will have to change… New Base Year: The 2011-12 base year will have to be changed. It is still being used. This means the figures do not accurately reflect the current economy. Whereas globally, it is updated every 5 years. India is going to change it next year, i.e., in 2026. The new base year will be 2022-23. Data Coverage: This needs to be increased. The informal sector (90% workers – street vendors, small shopkeepers, home-based workers) is not properly accounted for yet. This will provide a complete picture of the economy, leaving no gaps. It is expected to improve in the 2026 series. New Index: Currently, we look at WPI (Wholesale Price Index), which means how much a shopkeeper paid to buy goods in bulk from the factory. It does not account for the actual cost of production in the factory. Therefore, instead of WPI, PPI (Producer Price Index) should be adopted, which directly indicates the factory’s cost. Is there really something wrong with the GDP figures? Government: Prime Minister Modi said – 8.2% GDP growth in the second quarter of 2025-26 is very encouraging. This shows the impact of our growth-friendly policies and reforms. Meanwhile, Finance Minister Nirmala Sitharaman said – GDP data clearly shows the strong growth and momentum of the Indian economy. Allegation: Congress leader Jairam Ramesh said- It is ironic that the quarterly GDP figures have been released at a time when the IMF report has given a ‘C’ grade to India’s national accounts statistics. The economic figures are still disappointing. There is no momentum in private investment. Response: Some analysts say that these figures are real. There are some shortcomings, but it would not be entirely correct to call it a discrepancy. Receiving a ‘C’ grade is a warning for improvement. The grade may improve with the arrival of the new GDP series in 2026. The IMF has given an overall rating of B to the economy. Is it right for India and Pakistan to receive the same rating? India and Pakistan were given the same C grade by the IMF for GDP data because the method of accounting for both countries is almost identical. The accounts of small shopkeepers, street vendors, and those working from home are not properly included, the base year is old, and the method is also old. The IMF did not see that one country has democracy and the other has the influence of the army in the background. It only saw how many mistakes there were. But in the overall report card, India is far ahead of Pakistan. India’s growth rate was 8.2%, while Pakistan remained stuck at 5.70%. This means that in terms of accounting quality, both are equal, but in real performance, India is ahead. Despite US Tariff Pressure, GDP Grew by 8.2% Despite the pressure of US tariffs globally, including India, and sluggish private investment, India’s economy grew at a rate of 8.2% in the July-September quarter. This is the highest in the last 6 quarters. In the same quarter last year, GDP was 5.6%. While in April-June, it was 7.8%. Data from the National Statistical Office (NSO) clearly shows that rural demand, government spending, and the pace of manufacturing have boosted the economy. The full impact of the GST rate cut is yet to come, but these results are better than expected. GDP indicates the health of the economy GDP is used to track the health of the economy. It shows the value of all goods and services within a country over a specified period. This also includes production by foreign companies operating within the country’s borders. There are two types of GDP GDP is of two types. Real GDP and Nominal GDP. In Real GDP, the value of goods and services is calculated based on the value of the base year or at stable prices. Currently, the base year for calculating GDP is 2011-12. Whereas Nominal GDP is calculated at current prices. How is GDP calculated? A formula is used to calculate GDP. GDP=C+G+I+NX, where C stands for Private Consumption, G for Government Spending, I for Investment, and NX for Net Exports. ​