As per the report by the Ministry of Statistics And Programme Implementation (MoSPI) India has positioned itself as a third-largest economy in the world in terms of purchasing power parity (PPP) behind US and China. India holds $ 8,051 billion out of the world $ 1,19,547 billion of global GDP in terms of PPP.
The findings are part of the World Bank new PPPs for the reference year 2017, under the International Comparison Programme that adjusts for differences in the cost of living across economies of the World. Globally 176 economies participated in the 2017 cycle of ICP. The next ICP comparison will be conducted for the reference year 2021.
“India is also the third-largest economy in terms of its PPP-based share in global Actual Individual Consumption and Global Gross Capital Formation,” MoSPI said.
Purchasing Power Parities are vital for converting measures of economic activities to be comparable across economies. India was a co-Chair of the ICP Governing Board along with Statistics Austria for the ICP 2017 cycle, the ministry said.
India was the third-largest economy, followed by Japan, Germany, and the Russian Federation.
“Together, they represented nearly 64% of the global population,” the World Bank said.
The PPPs of Indian Rupee per US$ at Gross Domestic Product (GDP) level is now 20.65 in 2017 from 15.55 in 2011. The Exchange Rate of US Dollar to Indian Rupee is now 65.12 from 46.67 during the same period.
