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Sairaj Kadam
Entrepreneur • 3m
Does India Have the Capability? Does India Have a Market as Strong as the USA or Other Countries? Probably Not. This is where Price Power Parity (PPP) comes in. PPP compares the purchasing power of currencies by analyzing how much a basket of goods costs in different countries. For instance, if a basket costs $10 in the U.S. but ₹800 in India, PPP evaluates whether ₹800 holds the same value as $10. Where Does India Stand? India’s market is large but faces challenges: 1. Income Disparity: A significant portion of the population has limited purchasing power. 2. Currency Value: The rupee’s lower value impacts competitiveness globally. 3. Infrastructure Gaps: Taxes and transportation costs affect price parity. The Reality Even if we consider a growing India, it could take 10-20 years to bridge the gap. But here’s the catch—the RBI and the Indian government have the ability to address this disparity within months if they truly commit to it in the current conditions. Can India match up? Share your thoughts.
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