India moved up one position in per capita GDP

TNPSC Current Affairs - November 2017 by TNPSC Guru for Mains

India has moved one position up to 126^th place in terms of per capita GDP of countries. India has per capita GDP of $7,710 in 2017 comparing to $6,690 last year. Qatar remains first with per capita GDP of $1,24,930.

It was published in the data which is part of latest International Monetary Fund (IMF) report of World Economic Outlook. It ranks the countries in terms on per capita GDP based Purchasing Power Parity (PPP).

About Purchasing power parity: 

• Purchasing power parity (Parity means comparing two equal things) which means comparing one  country’s  currency rate to purchase the same volume of Goods and services in the other country.
• Example if we buy a toothpaste for Rs 50 in India and buying same in US with one dollar, so the purchasing power of India for buying toothpaste is Rs 50 and in US is 1 dollar.
• So what you can purchase with one dollar in US , you can purchase the same in India with Rs 50. Now the parity between two currency is one dollar in US is same as 50 Rs in India.
• So for latest data IMF has calculated the national income based on the PPP instead of current currency market value.