International Organizations (Part – I)

• Purchasing Power Parity (PPP) is described as the number of units of a country's currency necessary to purchase the same number of products on the domestic economy as one dollar would purchase in the United States
• The Purchase power parity approach enables us to determine the amount of exchange required between two currencies to accurately depict the buying power of the currency pairs in their respective nations
• For illustration, a cell phone that costs roughly 3000 rupees in India would cost around USD 40 in the United States if the currency rate is 75 rupees to one.

• Purchasing Power Parity (PPP) is described as the number of units of a country's currency necessary to purchase the same number of products on the domestic economy as one dollar would purchase in the United States
• The Purchase power parity approach enables us to determine the amount of exchange required between two currencies to accurately depict the buying power of the currency pairs in their respective nations
• For illustration, a cell phone that costs roughly 3000 rupees in India would cost around USD 40 in the United States if the currency rate is 75 rupees to one.

In terms of PPP dollars, China is the world's largest economy in 2018 (and also in 2022), followed by USA at 2nd and India al3rd position. Hence, statement 2 is incorrect. In terms of nominal GDP, India is at present (in 2022) the fifth largest economy of the world after USA (1), China (2nd), Japan (3) and Germany (4th),

India is one of the fastest growing major economies and is currently ranked as the world's sixth largest economy. Projections of growth, over the medium term, remain encouraging and optimistic for India. The underlying strengths are indicative of the potential of India to achieve a USD 5 trillion economy by 2025. The current structure of the economy and the emerging dynamics provide us grounds to target achieving 1 trilliondollarfrom agriculture and allied activities, 1 trillion from manufacturing and 3 trillionfrom services.
The Government has several ongoing initiatives across sectors focused on growth. In agriculture the Government is aiming to reorient policy focus from being production-centric to becoming income-centric. The emphasis on incomes provides a broader scope towards achieving the needed expansion of the sector. The proposed Industrial Policy 2018 provides an overarching, sector-agnostic agenda for the enterprises of the future and envisions creating a globally competitive Indian industry that is modern, sustainable and inclusive.
The Champion Services sector initiative is also under way to accelerate the expansion of select service sectors. The Working Group has accounted for these initiatives and encourages a fresh impetus to achieve the target of a five trillion economy.

• The WB is an international financial institution that provides loans and grants to the governments of low and middle-income/developing countries for the purpose of pursuing capital projects.
• It was established along with the IMF at the 1944 Bretton Woods Conference.
• The WB is the collective name for the International Bank for Reconstruction and Development (IBRD) and International Development Association (IDA), two of five international organisations owned by the WB Group.

The WB Group, which is the parent organisation of the WB, includes

• IBRD: It provides loans, credits and grants.
• IDA: It provides low or no-interest loans to low-income countries.
• International Finance Corporation (IFC):It provides investment, advice and asset management to private companies and governments.
• Multilateral Guarantee Agency (MIGA): It insures lenders and investors against political risk such as war.
• International Centre for the Settlement of Investment Disputes (ICSID): It settles investment-disputes between investors and countries.