[amp_mcq option1=”2nd” option2=”4th” option3=”6th” option4=”10th” correct=”option1″]
The correct answer is (a) 2nd.
The International Monetary Fund (IMF) publishes the World Economic Outlook (WEO) twice a year, which includes data on the size of economies in terms of gross domestic product (GDP). GDP is the total value of all goods and services produced in a country in a given year. It can be measured in nominal terms, which is the value of goods and services produced in a given year using the prices of that year, or in real terms, which is the value of goods and services produced in a given year using the prices of a base year.
The IMF also publishes data on GDP in terms of purchasing power parity (PPP). PPP is a measure of the relative purchasing power of different currencies. It is calculated by comparing the prices of a basket of goods and services in different countries. Countries with a high PPP have a higher purchasing power for goods and services than countries with a low PPP.
In the 2022 April WEO, the IMF estimated that India’s GDP in nominal terms was $3.2 trillion. This made India the world’s sixth largest economy. However, India’s GDP in PPP terms was $10.5 trillion. This made India the world’s second largest economy, after China.
The other options are incorrect because they do not reflect India’s GDP in PPP terms.