> Purchasing power parities (PPPs) are the rates of currency conversion that try to equalise the purchasing power of different currencies, by eliminating the differences in price levels between countries. The basket of goods and services priced is a sample of all those that are part of final expenditures: final consumption of households and government, fixed capital formation, and net exports. This indicator is measured in terms of national currency per US dollar
[0] https://data.oecd.org/conversion/purchasing-power-parities-p...
It works best when comparing people with relatively similar consumption, e.g. asking about the material lives of engineers in east- vs. west-germany. Both had cars, radios, apartments with indoor plumbing, and awful haircuts, but they paid for them with different money. Any exchange rate was basically a fiction, but even if the currencies had been freely traded, these two still couldn't buy each other's goods.
Some people in India have lives similarly comparable to the west, e.g. the class who buy iphones. But the ones who make this super-cheap data interesting really don't. I mean there are riots when the price of onions doubles after a poor harvest. It's difficult to imagine a shared basket of goods which meaningfully captures the comparison here --- between prices experienced by those whose weekly budget can flattened by onions, and people in the US.
Probably a better comparison would simply be to quote daily wages alongside such prices. GDP is about US$5/day, compared to about $175/day in the US.
Second, even after taking PPP into account data is still much cheaper in India - 30 USD per month for the thread parent after PPP conversion.
Math below:
PPP in [2] is National currency units/US dollar, i.e. INR/USD. It says that ~21.3 INR is going to buy you the same basket of goods in India that 1 USD buys you in USA.
9 USD = 9 * 70.394 = ~633.5 INR [3]
633.5 INR = 633.5 / 21.3 = ~30 USD PPP.
[1] https://en.wikipedia.org/wiki/Purchasing_power_parity#Issues
[2] https://data.oecd.org/conversion/purchasing-power-parities-p...
[3] https://www.irs.gov/individuals/international-taxpayers/year...
> 633.5 INR = 633.5 / 21.3 = ~30 USD PPP.
Thanks for taking the time to correct me.
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