India has surpasses Japan
India has surpassed Japan to become the third largest economy in the world in terms of purchasing power parity (PPP), as per data released by the International Monetary Fund (IMF).
India's gross domestic product in PPP terms stood at $4.46 trillion in 2011, marginally higher than Japan's $4.44 trillion, making it the third-biggest economy after the United States and China.
India's share in world GDP in terms of PPP stood at 5.65% in 2011 against Japan's 5.63%, with the gap expected to widen significantly by 2017. In five years, the IMF estimates the share of India's GDP in PPP terms would grow to 8.09% compared with 4.8% for Japan.
These statistics are a reminder of the growth potential that the country has despite the prevailing mood of cynicism. It has successfully turned the spotlight back on India and its untapped potential. However, it has to be kept in mind that Japan has recently faced a devastating tsunami and earthquakes, because of which its economy is expected to contract.
On the other hand, India's economy is estimated to have grown by about 7% over the past financial year. These factors have significantly contributed to the upward movement of India on the scale. India is also now Asia's second-largest economy, behind China.
PPP refers to the amount of money a person will have to spend to purchase the same basket of goods and services in one country as compared to the other. Based on this the relative value of currencies is determined. This method does away with the effect of a market determined currency and enables a comparison on real terms.
India's share in world GDP in terms of PPP stood at 5.65% in 2011 against Japan's 5.63%, with the gap expected to widen significantly by 2017. In five years, the IMF estimates the share of India's GDP in PPP terms would grow to 8.09% compared with 4.8% for Japan.
These statistics are a reminder of the growth potential that the country has despite the prevailing mood of cynicism. It has successfully turned the spotlight back on India and its untapped potential. However, it has to be kept in mind that Japan has recently faced a devastating tsunami and earthquakes, because of which its economy is expected to contract.
On the other hand, India's economy is estimated to have grown by about 7% over the past financial year. These factors have significantly contributed to the upward movement of India on the scale. India is also now Asia's second-largest economy, behind China.
PPP refers to the amount of money a person will have to spend to purchase the same basket of goods and services in one country as compared to the other. Based on this the relative value of currencies is determined. This method does away with the effect of a market determined currency and enables a comparison on real terms.
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