IMF Backs India’s New GDP Calculation Method Amid Debate Over 7.8% Growth

SEBI chief said that India's market capitalisation had grown nearly fivefold over the past decade. (Image Source: Pixabay)

The International Monetary Fund (IMF) has supported India's revised method of calculating gross domestic product (GDP), describing the changes as "consistent with international best practices". The backing comes amid a debate over whether the country's reported economic growth accurately reflects underlying activity. India recorded real GDP growth of 7.8 per cent in the April-June quarter of financial year 2026-27 (FY27), exceeding market expectations and the Reserve Bank of India's earlier projection.

The stronger-than-expected number sparked questions about the methodology used to measure economic expansion and the impact of revisions to historical data.

Krishna Srinivasan, Director of the IMF's Asia and Pacific Department, said India's updated approach aligns with recommendations made by the Fund, including guidance from its statistics department.

"These revisions to the methodology are entirely consistent with the advice we've been giving them, including from our statistics department," Srinivasan said.

He also welcomed the revision of India's GDP base year, while recognising the efforts of the Ministry of Statistics and Programme Implementation (MoSPI) to strengthen the country's economic data systems.

Why Has The IMF Endorsed India's Revised GDP Methodology?

India introduced…

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