Question : India has retained its position as the third-largest economy in the world in terms of purchasing power parity (PPP), behind the —
(a) UK and Russian Fed.
(b) Japan and France
(c)Canada and Gemany
(d) None of the above
Answer : (d)
Related facts
Context
- India has retained its position as the third-largest economy in the world in terms of purchasing power parity (PPP), behind the China and US.
- The findings are part of the World Bank new PPPs for reference year 2017, under the International Comparison Programme(ICP) that adjust for differences in the cost of living across economies of the World.
India : A lower-middle-income economy
- Globally 176 economies participated in the 2017 cycle of ICP.
- The next ICP comparison will be conducted for reference year 2021.
- Overall, 19 economies contributed three-quarters of global GDP; three of these economies (India, Indonesia, and the Arab Republic of Egypt) were classified as lower-middle-income economies and six (China, the Russian Federation, Brazil, Mexico, Turkey, and the Islamic Republic of Iran) were classified as upper-middle-income economies, with the remainder classified as high income economies.
- India accounts for 6.7% or $8,051 billion, out of the world’s total of $119,547 billion of global Gross Domestic Product (GDP) in terms of PPP compared to 16.4 % in case of China and 16.3 % for the US, World Bank data for reference year 2017 show.
- India, was the third-largest economy, followed by Japan, Germany, and the Russian Federation.
India’s position in Asia-Pacific Region
- India retained its regional position, as the second largest economy, accounted for 20.83 % in terms of PPPs where China was first at 50.76% and Indonesia at 7.49% was third.
- Purchasing Power Parities
Purchasing Power Parities are vital for converting measures of economic activities to be comparable across economies.
By — Pankaj Pandey