Rs 50,000 rent in India but Rs 1.6 lakh in US: Why Delhi researcher is calling out the NRI salary flex
"Next time your cousin/friend who has settled in the US says he makes Rs 80 Lakhs a year, tell them you only need Rs 23 Lakhs to match their lifestyle in India. This is how Purchasing Power Parity (PPP) works," said Chakraborty in a post on LinkedIn.
Check full statement here:
Next time your cousin/friend who has settled in the US says he makes Rs 80 Lakhs a year, tell them you only need Rs 23 Lakhs to match their lifestyle in India. This is how Purchasing Power Parity (PPP) works.PPP is a way to compare the value of money between different countries. It shows how much money you'd need in one country to buy the same things as in another country.Many people don't think about PPP when considering job offers or moving to another country. But it can be helpful. For example, if you have two job offers - one for 30 Lakhs rupees in India and another for 80 Lakhs rupees in the US - PPP can help you compare them fairly.However, PPP isn't the only thing to consider. Developed countries often have better public services, technology, and opportunities. They may also offer better social security.
https://www.linkedin.com/posts/squarepeg_next-time-your-cousinfriend-who-has-settled-activity-7337686956912295936-gim5?utm_source=share&utm_medium=member_desktop&rcm=ACoAAEQ6Xy4Bt5nqjz6qlhpwmmb6lTf_wPD6hqo
So, while PPP is useful, it's just one of many factors to consider when making decisions about jobs or moving abroad.
India's Purchasing Power Parity:
NITI Aayog Vice-Chairman Suman Bery said that the size of the Indian economy in the purchasing power parity (PPP) term is already USD 15 trillion, which is more than half the size of the US economy. The purchasing power parity (PPP) is the amount of currency units required to purchase a basket of goods and services that can be purchased with one unit of the reference economy's currency.
"There has been a lot in the newspapers about our being the fourth largest economy. Those are all measured at market prices, but the real way of measuring productivity is purchasing power parity. "And while we are USD 4 trillion GDP at market prices, at PPP term, we are USD 15 trillion economy," Bery said while addressing the Annual Business Summit 2025 of the Confederation of Indian Industry (CII). He said that economists tend to measure labour productivity at purchasing power parity as PPP measures the real size of the economy of countries against the size of the US economy.
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