The world's largest economies

The Indian economy is the 12th largest in the world. That is, India's gross domestic product stands at $1.171 trillion.

However, in terms of purchasing power parity, India is the world's fourth largest economy. Its GDP in purchasing power parity terms is at $3.092 trillion.

These are the year 2007 figures, recently released by the World Bank.

By definition, purchasing power parity (PPP) is an economic theory that estimates the amount of adjustment needed on the exchange rate between countries in order for the exchange to be equivalent to each currency's purchasing power.

India is the one of the world's fastest growing economies, yet its annual per capita income remains quite low at $950, or about Rs 40,000. That puts India in the 160th spot.

Incidentally, World Bank figures show that the world's GDP is at $54.347 trillion. India accounts for just over 2 per cent of global GDP.

The World's largest Economies

United States

The American GDP is at $13.812 trillion, making it the world's largest economy. It accounts for more than 25 per cent of the entire world's GDP!

In terms of purchasing power parity too, the United States is the world's leading economy.

However, its per capita income at $46,040, per year, pegs it at the 15th spot in the world.

The world's 2nd largest economies

2. Japan

Japan, with a GDP of $4.377 trillion, is the world's second largest economy.

However, in terms of purchasing power parity, Japan is ranked third by the World Bank. It's GDP in PPP terms is $4.283 trillion.

Japan's per capita income (annual) is $37,670, making it the 25th highest in the world.

The world's 3rd largest economies

Germany

Germany is the world's third largest, with its GDP at $3.297 trillion.

But in PPP terms, Germany is the world's fifth largest economy. It's GDP in PPP terms is at $2.752 trillion.

Its per capita income is the 23rd highest in the world, at $38,860.

The world's 4th largest economies

China

China, the Asian giant, is the world's fourth largest economy with a GDP of $3.281 trillion; but in purchasing power parity terms it ranks second at $7.055 trillion.

It is the world's fastest growing major economy and its giant strides have taken the world by a storm. Economists predict that over the next few decades, it could topple the US as the world's largest economy.

China's per capita income, however, is still low at $2,630 per year.