In terms of Purchasing Power Parity (PPP), the place of the economy of India is ________ in the world.
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → 3rd
Purchasing Power Parity (PPP) compares the size of economies by what their money can buy at home, not by market exchange rates. Goods and services cost much less in India than in the rich countries, so a rupee buys more at home than its dollar exchange value suggests, and India’s GDP is far larger in PPP terms than in dollar terms.
Measured this way, by the World Bank and the IMF, India is the third-largest economy in the world, after China and the United States.