• The World Bank has released the new purchasing power parity (PPP) for the reference year 2017, under the International Comparison Program (ICP), that adjust for differences in the cost of living across economies of the world.
• Globally, 176 economies participated in 2017 cycle of ICP.
• India has retained its position as the third-largest economy in the world in terms of purchasing power parity (PPP) for 2017, as per the World Bank data. India was 3rd largest in 2011 round of World Bank’s International Comparison Program (ICP) also.
• In 2017, the United States and China were the two largest economies in the world and together accounted for one-third of the global economy.
• India accounts for 6.7 percent, (amounting to $8,051 billion, out of the world’s total of $119,547 billion) of global Gross Domestic Product (GDP) in terms of PPP, a measure of relative consumer prices across countries.
• China’s GDP stood at $19,617 billion (16.4%) in PPP terms in 2017, while the United States’ GDP was $19,519 billion (16.3%).
• The Price Level Index (PLI)- the ratio of a PPP to its corresponding market exchange rate, which is used to compare the price levels of economies- improved to 47.55 in 2017 from 42.99 in 2011.
• International Comparison Program (ICP)
• The ICP is one of the largest statistical initiatives in the world, managed by the World Bank under the guidance of the United Nations Statistical Commission (UNSC).

The main objectives of the ICP are to:

• Produce purchasing power parities (PPPs) and comparable price level indexes (PLIs) for participating economies;
• convert volume and per capita measures of gross domestic product (GDP) and its expenditure components into a common currency using PPPs.
• India has participated in almost all ICP rounds since its inception in 1970.
• The last ICP comparison was conducted in 2011.
• The next ICP comparison will be conducted for the reference year 2021.