IMF Welcomes India’s Efforts To Modernise Statistical Framework

Washington: Amid the ongoing debate over the credibility of India’s latest GDP estimates, the IMF has welcomed the country’s efforts to modernise its statistical framework, saying the incorporation of a new Index of Industrial Production (IIP) and Producer Price Index (PPI) series should help improve the accuracy of GDP estimates.

“The latest GDP release that we just talked about incorporated both a new index of industrial production, and a new producer price index series, and those two new series should help improve India’s GDP estimates,” Julie Kozack, Director of the Communications Department, IMF, said in response to a question from PTI. She said the IMF welcomes these important steps that India is taking to modernise its macroeconomic statistics.

“We, of course, encourage the authorities to continue to further strengthen the statistical framework and data quality along the lines that they’re progressing,” Kozack said at the monthly briefing here.

She said India’s real GDP in the second quarter grew by 7.8 per cent which was above the IMF’s staff expectations, and also the consensus among other observers.

“This upward surprise was driven by stronger-than-expected activity in the services sector, and also in exports,” Kozack said.

“I think what we would say is the outcome also underscores the resilience of the Indian economy, despite the energy price shock. And it also means that, you know, as we’ve been saying for quite some time, that India does remain a key growth engine for the world,” the IMF official said.

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