New Delhi/Washington: The International Monetary Fund (IMF) has welcomed India’s efforts to modernise its economic data system, saying the introduction of new industrial production and producer price indices should improve the accuracy of the country’s GDP estimates.
The comments come amid a debate over the credibility and methodology of India’s latest GDP numbers.
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Julie Kozack, Director of the IMF’s Communications Department, said the latest GDP release incorporated a new Index of Industrial Production (IIP) as well as a new Producer Price Index (PPI).
“These two new series should help improve India’s GDP estimates,” Kozack said in response to a question at the IMF’s monthly media briefing on Thursday.
While welcoming the changes, the IMF also urged the government to continue strengthening the country’s statistical framework and data quality.
“We encourage the authorities to continue to further strengthen the statistical framework and data quality along the lines that they’re progressing,” Kozack said.
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India’s economy expanded by 7.8 percent in the April-June quarter, exceeding the expectations of IMF staff as well as the broader market consensus.
Kozack attributed the stronger-than-expected performance largely to higher activity in the services sector and robust exports.
The growth figure also demonstrated the resilience of the Indian economy despite the global energy price shock, she said.
“The outcome also underscores the resilience of the Indian economy, despite the energy price shock,” Kozack said, adding that India remained a key driver of global economic growth.
The IMF’s comments provide support for India’s statistical overhaul, even as the Fund’s call for continued improvements indicates that concerns over data quality and methodology have not been fully put to rest.
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