The PPP model is mainly brought into application to compare economies and income of people by adjusting for differences in prices in different countries to make a meaningful comparison. India's share in World GDP in terms of PPP was 6.4 percent in 2011 compared with China's 14.9 percent and US' 17.1 percent, the latest International Comparison Programme (ICP) showed and the survey covered 199 economies.

"United States remained the world's largest economy but it was closely followed by China when measured using PPPs. India was now the world's third largest economy, moving ahead of Japan," the report said.

Despite high inflation in India in recent years, prices in the country are still well below those in advanced economies, explaining the higher raking for India on the PPP measure.

However, according to the International Monetary Fund (IMF), the Indian economy is 12th largest and only about a third of Japan's in terms of absolute unadjusted dollars.

"The economies with the lowest prices are either in Africa or Asia and the Pacific and include India, which has the third-largest economy," the report mentioned.

There are some grey areas when it comes to measuring the magnitude of Indian economy. According to the parameters of International Monetary Fund, the Indian economy is the 12th largest, which definitely does not augur well with the rank it has attained in terms of PPP.

A bevy of issues like the slide in value of rupee against dollar in the past one decade, under-utilization of natural and human resources, lack of investment-friendly environment, absence of uniformity in economic health, limited avenues of employment generation are some of the issues with which the nation needs to deal in a clinical manner.

Let us take a very lucid example. Someone who is drawing an average salary of Rs 20,000/- (metro/non-metro area) won’t have any aspiration to lead a fancy and luxurious life but wish for a life where he can at least have access to the basic necessities and afford three meals a day for his family.

With rising costs of electricity units, fuel prices, house rents and water bills, it is seemingly impossible for him to make all ends meet with just Rs 20,ooo. Is there any solution?

The solution lies in striking a proper balance between the public and private sector. Though the situation has improved majorly ever since the government revamped the economy by introducing LPG – Liberalization, Privatization and Globalization, the development has actually not taken place on pan-India level as there remains a gross inconsistency in the growth pattern even after 23 years of the nation’s pursuit to boost economic growth.

In order to bring Rs 20,000/- model into effective application, the nation’s Gross Domestic Product (GDP) needs to get back to at least eight-nine percent growth from its present five percent.

The onus is completely on the government and the concerned machineries to fast-track the country into the path of rapid development. Today, the common man is facing a host of hardships to fulfill his basic needs and necessities and see the light of the day throughout the entire calendar days of a month.

There is also a widespread notion that the metros provide better growth opportunities compared to mini-metros or Tier-II and Tier-III cities but from a common man’s perspective it is nothing but a myth, which needs to be debunked.

The cost of living is much higher in the cities and hence the money earned gets spent instead of being saved due to some certain obligations. Today, the call is for a uniform growth pattern and presenting a particular city as a growth model is not going to yield any benefit.

By generating employment opportunities in the towns, villages and urban areas, with infrastructures comparable to that of the cities and metros, the local population can gain a first-hand experience of the work culture that prevails in the contemporary corporate world. This would prove effective in cutting down the conventional ‘barriers’ that exist between the rural and urban workforce.

We have been talking about setting up of Special Economic Zones (SEZ) and a few have come up as well, notwithstanding the hurdles related to land acquisition and compensation to land owners.

The concept of SEZ is undoubtedly a game-changer and its efficacy can be harnessed in a more competent manner if the rural areas, which are relatively untouched and far away from the realms of development, are brought under these dynamics.

This will not only generate employment but would also attract investment and this entire modus operandi will prove a major fillip to the local economy.

The government, no matter, which party it is from, has this habit of politicizing things. So, the road ahead is definitely not going to be that easier. Having said that, a conscious effort from educated and elite classes can bring a major difference.

Today, the nation is standing on the verge of ne0-economic revolution and it is high time to break away from the set and defined norms of the game in order to make an impact. Today, we need a set and stable economic ambience. Only then, this news of India being the third-largest country in terms of PPP world would be more cheerful in its true sense.

Pankaj Ghosh/JPN

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