How to calculate GDP (PPP) and GDP nominal?

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Take a basket of commodities (like 1 kg sugar,wheat,veggies and cloths etc).

Now find out how much money do you need to buy everything from that basket?

For India suppose the bill is 1700 Rs.

Go to America and buy same items from their local market, the bill is 100$

So 100$=1700 Rs. => 1$=17 Rs.

So, PPP exchange rate is 17 Rs. per 1 $

To calculate GDP (PPP)

GDP (in Rupees) / PPP exchange rate for Rupees

=100/17

=5 $

India’s GDP (PPP)= 5$

To calculate nominal GDP in $. 

Just convert the Rupee into dollar at official exchange rate.1$=50 Rs.

India’s GDP (in Rupees)/official exchange rate

=100/50

=2$

So India’s GDP (nominal) is 2$.

#As described by Mrunal

Food security related statistics for India

• The Global Hunger Index released by International Food Policy Research Institute (IFPRI) places India 67th in rankings with a score of 24.1, far below China and below Sri Lanka, Pakistan and Nepal.

• The Global Hunger Index is calculated as an average of (1) proportion of the population that is undernourished (in %), (2) prevalence of underweight in children under five (in %) and (3) proportion of children dying before the age of five (in %). For India, the respective numbers are 22, 43.5 and 6.9.

• According to FAO, about 25% of world’s undernourished live in India.

Why G-20 is a failure or will be one?

Prof. Nouriel Roubini, the famed economist who is credited with predicting the global financial crisis comments on the utter failure of the G-20 in giving global leadership.  Recently he cited reasons for this failure. I am just putting them down here and awaiting comments, if any. This is available on internet elsewhere as well.

India likely to be world’s largest economy by 2050: Citi

In view of its continuing robust growth, India is expected to be the world’s largest economy by 2050, surpassing China and the US, a Citi report said.  The estimates are based on purchasing power parity (PPP), an economic growth indicator that takes into account the purchasing power of each country’s currency, instead of the prevailing exchange rate conversion (GDP nominal).