[Reader-list] Highlights of PM’s Independence Day speech - 198

[Rakesh Iyer]

Dear Kshamendra

The problem is that the sources I did get for the PPP conversion (from
dollars to rupees) have different datas. The one I got for petrol was
stating that it was about Rs. 10 as per 2000 data, whereas there was one
which stated that Rs. 13.60 as per 2007 data (Wikipedia source). Hence, you
are right when you talk about my having chosen that value of Rs. 10. I chose
it, as an unfortunate consequence, of not having proper info, taking the
lowest value into account, to avoid any kind of bias in calculation. Hence
also, I didn't mention the source. (Then again, the World Bank data I
mentioned in one of my previous mails give a different rate of conversion).

I think there is a mistake in your typing, or in your calculations, because
the factor of conversion is 2.65-2.74 when you say "  *For the International
Dollar the factor in 2008 is generally reported as between 2.65 and 2.74 for
the In Rs." *whereas then you further add "*$2 (under PPP) would therefore
at worst be around Rs 35 (nominal rate Rs 48)  and Rs 29.19 (nominal rate Rs
40).*" I think it's 12.65-12.74 you are talking about, please do reply, so
that I can clarify.

And from the figures you gave (the nos both outside brackets and also those
mentioned as nominal rates), I dont' think there's any contradiction of
those figures with that of the NCEUS report.

By the way, since I gave the World Bank figures, I would also specify the
rate of conversion in that fact I gave:

Rs. 15 (rural areas): = $1.25 (PPP) then $1 (PPP) = Rs. 12
Rs. 21.6 (urban areas) = $1.25 (PPP) then $1 (PPP) = Rs. 17.28

I don't know which one to accept, but I take the lower limit as Rs. 12 for
the moment.

Just as clarification, can you also specify what are nominal rates and what
are the nos. outside the brackets?

Regards

Rakesh

P.S: I agree with you that World Bank gives data in PPP terms. But I also
said that the PPP is itself in a controversy, as to whether it should be
used or not.