World Banks reveals it on Tuesday: “India as now (2011) the world’s third largest economy, moving ahead of Japan,” In 2005, India was at 10th rank having ‘2.34 trillion dollar’ and Japan was at 3rd rank having ‘3.87 trillion dollar’. India still lacks in human development index and per capita GDP as World Bank reveals that condition on per capita GDP is still a burning question as India having 129th among 177 nations in PPP terms.
PPP refers to a relative ratio between two economy’s currencies to identify the purchasing power of one unit of a currency in a foreign economy. For instance, A bike costs 2000 $ in US. It’s cost is 45000 Rs in India. Then PPP for the car between both economies is 0.04$ (2000/50000) to Rupees from Indian perspective and from US perspective it is 25 $ (50000/2000).
Such comparison brings actual cost of living in these economies.
Six largest economies China, India, Russia, Brazil, Indonesia and Mexico from middle income group accounts 32.3% of world GDP and Six largest economies US, Japan, Germany, France, UK and Italy from high income group account for 32.9 per cent.