The global economic balance seems to be tilting towards the developing countries. India has overtaken Japan to emerge as the third largest economy in purchasing power parity (PPP) terms, after the US and China. The previous version of the World Bank’s International Comparison Program (ICP) report had said that India was ranked 10th in 2005 in terms of PPP. PPP is used to compare economies and incomes of people by adjusting for differences in prices in various countries.

(Times of India)