In terms of PPP the Indian economy’s rank in the world is

2nd
4th
6th
10th

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.

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