Amid the ongoing debate over the credibility of India’s latest GDP estimates, the International Monetary Fund (IMF) has welcomed the country’s efforts to modernise its statistical framework, and said that the incorporation of a new Index of Industrial Production (IIP) and Producer Price Index (PPI) series should help improve the accuracy of Gross Domestic Product (GDP) estimates.
Julie Kozack, Director of the IMF’s Communications Department, said the latest GDP release incorporated both a new IIP and a new PPI series, which “should help improve India’s GDP estimates.” She encouraged the authorities to continue strengthening the country’s statistical framework and data quality.
She also noted that India’s real GDP grew 7.8% in the second quarter, exceeding IMF staff expectations as well as the consensus among other observers. She said the upside surprise was driven by stronger-than-expected activity in the services sector and higher exports.
