Purchasing Power Parity
PPP represents the number of units of a country's currency required to purchase the same amount of goods and services in the domestic market as the US dollar would purchase in the United States, thus adjusting for purchasing power differentials between currencies in relevant markets. India’s contribution to global growth in PPP terms increased from an average of 8.3 per cent during the period 2001 to 2007 to 14.4 per cent in 2014.
India is the ninth largest economy in the world by the nominal GDP. By Purchasing Power Parity (PPP) India is the third largest economy in the world. Purchasing Power Parity (PPP) is a technique used to determine the relative value of currencies. It takes into account the relative costs and the inflation rates of the countries rather than using the exchange rates.