India 3rd-Largest Economy On PPP Basis For 2017

• 21 Jul 2020

• India has retained its position as the third-largest economy after China and the US in terms of purchasing power parity (PPP) for 2017, according to a government release that quoted the World Bank data.
• India is also third-largest economy in terms of its PPP-based share in global actual individual consumption and global gross capital formation.
• The World Bank has released new PPPs for the reference year 2017, under the International Comparison Program (ICP) that adjust for differences in the cost of living across economies of the world.
• The ICP is the largest worldwide data collection initiative, under the guidance of UN Statistical Commission (UNSC), with the goal of producing PPPs, which are vital for converting measures of economic activities to be comparable across economies.

Regional Position of India

• As per the release, in 2017, India retained its regional position, as the second-largest economy, accounted for 20.83 per cent of the regional gross domestic product (GDP) in terms of PPPwhereas China was at 50.76 per cent (first) and Indonesia at 7.49 per cent (third).
• India is also the second-largest economy in terms of its PPP-based share in regional actual individual consumption and regional gross capital formation.