What is the meaning of IMF Rating C?

An IMF Rating C indicates that a country’s national accounts and inflation data have shortcomings that somewhat hamper surveillance. According to the sources, the International Monetary Fund (IMF) issues four types of ratings (A, B, C, and D) to evaluate the quality of a country's data calculation.

Specifically, a "C" rating signifies the following:

• Increased Shortcomings: While a Grade B rating is for data with only minor issues, a Grade C is assigned when shortcomings increase, suggesting the data does not adequately capture the economic situation.

In the context of India, the IMF downgraded the rating to "C" because the national accounts were based on an outdated base year (2011-12) and showed discrepancies between the production and expenditure methods of calculating GDP. This rating served as a primary reason for the Indian government to initiate the current base year revision and methodological updates to align with global standards.