India emerged as the world’s third-largest economy in 2011 from being the 10th largest in 2005 in terms of purchasing power parity (PPP), according to a new study by the world’s leading statistical agencies.
The 2011 International Comparison Program (ICP), which involves the World Bank, ranked India before Japan and after the US and China. The last survey in 2005 had placed India on the 10th place.
PPP is used to compare economies and incomes of people by adjusting for differences in prices in different countries to make a meaningful comparison.
The report has given India’s ruling Congress party a shot in the arm which has been targeted by the opposition Bharatiya Janata Party for the country’s slow growth.
On Wednesday, the Congress leadership hailed the World Bank report as an ‘answer’ to the party’s critiques (BJP).
“This is an answer to Modi and other leaders of opposition for their false accusations against us,” said General Secretary of Congress party, Shakeel Ahmad.
The opposition BJP’s prime ministerial candidate Narendra Modi often launchs sharp attacks on the Congress party blaming the Congress-led government of weak economic policies and development fallouts during its ten year long term.
Ahmad said that India has achieved the feat because of Prime Minister Manmohan Singh’s efforts.
“This is the result of his efforts that yesterday World Bank has said India is number third,” he said.