To derive these weights, one converts the GDP of a country in national currency terms to a common currency (in practice, the US dollar). One of the two ... The other uses the purchasing power parity ...

Purchasing power parity (PPP) is an economic theory that posits that goods and services should cost the same amount everywhere once currencies are exchanged. In other words, one U.S. dollar should ...

This means that for every dollar spent in the USA, one would need to spend Rs 5 in India. Talking about Purchasing Power Parity, CA Nitin Kaushik noted that in India, earning Rs 23 lakh may seem ...