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More like $30-$40 billion not $200 billion. The current PPP multiplier is somewhere between 3 and 4.

PPP is most useful when looking at domestically manufactured items and services. When looking at anything that needs to be imported, normal exchange rates are a much better tool. In fact due to import duties in India, many international goods are more expensive in India that in most of the west.



I literally used the multiplier here: https://data.oecd.org/conversion/purchasing-power-parities-p...

As shocking as it sounds, PPP multiple is really 18x


That's not the PPP multiple -- that's the PPP exchange rate.

From the chart you stated. Total, National currency units/US dollar, 2000 – 2018

I.e, in PPP terms 18 Rupees is one US Dollar.

In real terms, about 70 Rupees is one US dollar, given a PPP multiplier of slightly under 4 at current nominal exchange rates.


If you compare just the house rents in all the major Indian metros then PPP is around 4 5.


Then compare it with major US metros only and not entire US.

The multiplier again becomes 18x


OK but labor is a dominant cost in most of these startups. The labor is all local, being paid local wages. PPP is absolutely relevant.




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