Ever gone abroad and felt poor despite your Indian riches? Welcome to the world of Purchasing Power Parity (PPP) — the reason your ₹200 biryani at home turns into a $25 struggle meal overseas.
Let’s break it down — with a burger, of course.
🍔 The Burgernomics of PPP
- India: Burger meal = ₹200
- USA: Same burger = $5 = ₹400 (assuming $1 = ₹80)
That means what costs ₹200 in India costs double in the US. So your money
buys less abroad — because the purchasing power isn’t equal.
💵 So what exactly is PPP?
Purchasing Power Parity is an economic theory that compares the value of currencies through the cost of a standard “basket of goods” across countries.
It’s why economists say India’s GDP is $3.7 trillion nominally but over $11
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