India Trade tarries.....and nations arround....sectors wise favour unfavour situation with figures and facts as paragrahic narrative with titles of all pros and cons....
India's trade landscape in early 2026 shows robust export growth projected at USD 850 billion for FY 2025-26, driven by merchandise and services, amid widening deficits and tariff hurdles from partners like the US.[1][2] Neighboring and key nations present mixed fortunes across sectors, with diversification aiding resilience despite delays in FTAs.[3][4] Favorable dynamics emerge in electronics and pharma, while textiles and gems face headwinds from tariffs and competition.[5][6]
## China Trade Dynamics
India's trade with China features a massive deficit nearing USD 99 billion in FY25, fueled by heavy imports of electronics, machinery, chemicals, and EV components totaling over USD 128 billion annually.[7][8] This dependency supports India's manufacturing but risks supply chain disruptions and unfair competition from low-cost goods.[8][9] Pros include access to critical inputs for green energy and infrastructure, enabling sectors like batteries and solar to thrive without domestic shortages.[8] However, cons dominate with structural imbalances, as Indian exports remain limited to raw materials worth just USD 14 billion, stifling value addition.[10] Government measures like anti-dumping duties and quality controls offer protection, fostering local industry growth in machinery.[9] Yet, cross-sectoral reliance heightens vulnerability to geopolitical tensions and tariff escalations.[8] Overall, while enabling rapid industrialization, this lopsided tie demands urgent diversification for long-term resilience.[10]
## USA Trade Challenges
US tariffs at 50% on most Indian goods, including a 25% penal levy tied to Russian oil buys, have slashed exports in gems and jewelry by USD 161 million year-on-year.[11][12][6] Despite this, pharma, semiconductors, and electronics remain exempt, preserving 40% of USD 87 billion in exports and allowing competitive gains over China.[11][5] Pros shine in services and diversification, with overall exports to the US expected to double to USD 116 billion by 2033 amid strong bilateral ties.[13][14] Labor-intensive textiles and apparel declined 10%, but marine products grew 23% via new markets.[3][15] Cons include GDP hits of 0.3-0.5% and rupee pressures from a USD 4-5 billion export drop.[11] Delayed trade deals exacerbate uncertainties, prompting PLI schemes for autos and steel.[16] Positive growth in 24 alternative nations underscores successful pivots.[3]
## UAE Trade Strengths
Bilateral trade with UAE hit USD 100 billion in FY25, making it India's third-largest partner and second for exports in gems, jewelry, textiles, and oil.[7][17] Pros abound with CEPA boosting non-oil trade toward USD 250 billion by 2030, adding USD 9 billion to UAE GDP and jobs in India.[17] This partnership eases energy security and diaspora-driven investments totaling USD 16.67 billion FDI.[17] Sectors like pharma, food, and renewables gain from strategic collaborations and low barriers.[17] Cons are minimal, though oil volatility poses risks; diversification into AI and defense mitigates this.[17] Strong ties ensure balanced growth without major deficits.[7] Future potential in startups and aviation further favors expansion.[17] Overall, UAE exemplifies a win-win model for India's regional trade.[17]
## Bangladesh Neighborhood Ties
India exports USD 16 billion in cotton, machinery, and vehicles to Bangladesh, capturing 4% of total exports amid surging bilateral trade.[18][19] Pros include robust demand for textiles inputs, supporting Bangladesh's garment boom despite political frictions, with 16.5% sector growth in 2025.[19] Proximity cuts logistics costs, fostering BIMSTEC integration for multi-sector gains.[20] This bolsters India's neighborhood influence and supply chain roles.[18] Cons involve occasional anti-India sentiment impacting non-textile flows and competition in ready-mades.[19] Trade imbalances favor India but risk retaliatory barriers.[18] Efforts like BIMSTEC FTA promise deeper ties in energy and services.[20] Stable volumes signal favorable long-term prospects.[19]
## EU Emerging Opportunities
India-EU trade exceeds EUR 190 billion annually, with USD 76 billion goods exports facing average 3.8% tariffs but up to 10% on textiles.[21][22] Pros from nearing FTA include boosts for pharma, autos, electronics, and chemicals via duty cuts, aiding MSMEs.[22][23][24] This counters GSP suspension raising barriers on 87% of exports from 2026.[25] Sectors like IT services and leather gain market access, projecting 80% trade rise by decade-end.[13][23] Cons feature delayed deals hiking costs amid climate measures, testing competitiveness.[4][25] High EU tariffs on Indian autos (9%) persist pre-FTA.[21] Diversification offsets US risks effectively.[21]
## Key Sector Favorable Views
Electronics exports surged 50% YoY, with production up sixfold and import reliance near zero, fueled by PLIs and partners like US/EU.[3][26] Pharma thrives exemption from US tariffs and EU alignment, positioning India as a global hub.[11][23] Autos and components benefit from diversification, targeting EU/ ASEAN growth despite US hits.[16][24] Services exports grew 6.46%, leading overall USD 634 billion April-Dec tally.[1] Marine and rice up 23-33%, showcasing resilience.[3] These drivers project USD 850 billion total exports.[1] Policy support like PLIs ensures momentum.[16]
## Key Sector Unfavorable Pressures
Textiles and garments fell 10%, battered by US 50% tariffs and EU 10% duties, risking jobs in labor-intensive chains.[3][15][21] Gems/jewelry plunged USD 161 million from US demand drop and order cancellations.[6] Steel and seafood declined 35% amid tariffs and oil-linked penalties.[6] Auto parts face machinery headwinds from reciprocal duties.[5] Widening deficit to USD 25 billion in Dec 2025 stems from 8.8% import rise.[2] FTA delays amplify vulnerabilities.[4] Targeted budgets aim to counter these via diversification.[27]
Provide a sector-wise breakdown of India's exports and imports with figures
India's merchandise exports reached USD 437.42 billion in FY25, with services adding USD 383.51 billion for total exports of USD 821 billion.[1][2] Imports totaled USD 720.24 billion in merchandise, leading to a widening trade deficit amid 6.2% import growth.[1][3] For April-December 2025, cumulative exports hit USD 634.26 billion, up 4.33% YoY.[4] Key sectors show varied performance, with electronics and pharma driving gains despite tariff pressures.[5][6]
## Exports by Sector
India's top export sectors for FY25 and recent months emphasize engineering, electronics, and pharma, with strong YoY growth in November 2025.[5][1]
| Sector | Key Figures (Recent) | Growth Notes [5][6] |
|-------------------------|---------------------------------------|-------------------------------|
| Engineering Goods | USD 11.01B (Nov 2025); USD 9.90B (Sep 2025) | +24% YoY; +4.9% YoY |
| Electronic Goods | USD 4.81B (Nov 2025); USD 2.93B (Sep 2025) | +39% YoY; +26% YoY; +17% Dec |
| Gems & Jewellery | +28% YoY (Nov); USD 2.31B (Sep 2025) | +15.5% YoY |
| Drugs & Pharma | +21% YoY (Nov); USD 2.51B (Sep 2025) | +6.9% YoY; +6% Dec |
| Textiles & Apparel | USD 1.20B (Sep 2025) | +9% YoY |
| Petroleum Products | Key driver (Nov 2025) | Positive growth |
| Meat/Dairy | +30% (Dec 2025) | Strong performance |
| Rice/Marine | +33%/23% (recent) | Resilient |
Overall non-petroleum exports grew to USD 374.08 billion in FY25.[1]
## Imports by Sector
Imports focus on energy, electronics, and gold, with contractions in some amid diversification efforts.[5]
| Sector | Key Figures/Trends (Recent) | Notes [5] |
|---------------------|------------------------------------------|-----------------------------|
| Petroleum/Crude Oil| Major component; volatile | Contraction in Nov 2025 |
| Gold | Significant contraction (Nov 2025) | Import decline YoY |
| Electronic Components| High reliance for assembly | Key import driver |
| Vegetable Oil | Contraction (Nov 2025) | Reduced volumes |
| Coal/Newsprint | Declines YoY (Nov 2025) | Positive for deficit |
| Machinery/Chemicals | Steady rises, fueling manufacturing | Supports growth sectors |
Merchandise imports rose 8.8% to USD 63.55 billion in Dec 2025, contributing to deficits.[7][3] Services imports estimated at USD 194.95 billion for FY25.[1]
Show a table of merchandise vs services exports by sector
India's exports blend merchandise and services, with merchandise at USD 437.42 billion and services at USD 383.51 billion for FY25, totaling USD 821 billion.[8][9] Sector-wise, merchandise covers tangible goods like engineering and pharma, while services focus on IT, business, and travel.[10][11] April-December 2025 data shows cumulative exports of USD 634.26 billion, up 4.33% YoY.[11][12]
## Merchandise Exports by Sector
Merchandise exports emphasize engineering and electronics, with recent monthly surges.
| Sector | Value (Recent, USD Bn) | Period/Notes [10][13] |
|-----------------------|-------------------------|-------------------------------|
| Engineering Goods | 11.01 | Nov 2025; +24% YoY |
| Electronic Goods | 4.81 | Nov 2025; +39% YoY |
| Gems & Jewellery | 2.31 (Sep) | +28% YoY Nov |
| Drugs & Pharma | 2.51 (Sep) | +21% YoY Nov |
| Textiles & Apparel | 1.20 | Sep 2025; +9% YoY |
| Petroleum Products | Major share | Positive Nov growth |
## Services Exports by Sector
Services exports, led by IT and software, reached strong FY25 levels without granular monthly sector splits in available data.
| Sector | Value (FY25, USD Bn) Est. | Notes [8][9] |
|-----------------------|---------------------------|-------------------------------|
| IT & Software | ~200+ | Dominant; 50%+ of services |
| Business Services | ~100 | Growth driver |
| Transport | ~30 | Steady |
| Travel | ~25 | Tourism rebound |
| Financial Services | ~15 | Emerging |
Merchandise forms ~53% of total exports, services 47%, with non-petroleum merchandise at USD 374.08 billion.[8] Data gaps exist for precise parallel monthly services breakdowns.[11]
Which sectors dominate India's services exports by share of GDP
India's services exports, which contribute about 9.4% to GDP as of 2023-24 data extended into 2025 trends, are overwhelmingly dominated by IT-related sectors.[1][6] Computer, telecommunications, and information services lead with roughly 47-48% share of total services exports, far outpacing others and ranking India second globally in this category.[1][2] Other business services, including professional consulting and technical expertise, follow at 25-26%, reflecting high demand for knowledge-based outsourcing.[1][3]
## Dominant Sectors Table
Services exports totaled around USD 383 billion in FY25, with these top sectors driving over 70% of the volume.[11][6]
| Sector | Share of Services Exports | GDP Contribution Notes [1][2][6] |
|---------------------------------|---------------------------|------------------------------------------------|
| Computer, Telecom, Info Svcs | 47-48% | ~4-5% indirect GDP via 10% global market share |
| Other Business Services | 25-26% | Boosts productivity; 7% global rank |
| Transport | 8-11% | Logistics growth; stable ~1% GDP link |
| Travel | ~9-10% | Tourism rebound; minor direct GDP |
| Financial Services | ~2-3% | Emerging; supports overall 55% services GVA |
## Growth Context
These leaders propelled 12.8% YoY services export growth in April-Nov FY25, outstripping merchandise and aiding trade surplus.[3][6] IT dominance aligns with services' 55% overall GDP share, though traditional areas like trade lag in productivity.[3] Projections see services exports nearing 11% of GDP by 2030.[4]
Share of IT and business services in India's GDP
India's IT and business process management (BPM) sector contributes around 7-8% directly to GDP as of FY24-25 data, with projections reaching 10% by late 2025 amid strong digital growth.[1][5] This segment, encompassing software services, IT consulting, and outsourcing, forms the core of services exports at 47-48% share and underpins the broader 55% services GDP footprint.[11][7]
## IT-BPM Share Breakdown
IT-BPM's GDP role has risen steadily, driven by exports over USD 194 billion in FY23 and employment for 5+ million.[1][5]
| Component | GDP Share (Recent Est.) | Key Drivers [2][4] |
|-----------------------|--------------------------|------------------------------|
| IT Services | 5-6% | Exports (51% of IT total); digital transformation |
| BPM/Outsourcing | 2-3% | 22-25% of exports; fintech, CRM growth |
| Combined IT-BPM | 7-10% (FY24-FY25) | Projected $1T sector goal by 2025; 8.4% CAGR |
## Economic Context
This outpaces many peers, fueling forex reserves and productivity despite services averaging lower growth than industry lately.[8] Indirect multipliers via fintech and e-commerce amplify impact to 10-13% when including ICT ecosystem.[4] FY25 trends show resilience with 12.8% export surges.[12]
Employment generated by IT and business services in India 2023
India's IT-BPM sector employed 5.4 million people as of March 2023, marking a key pillar of formal employment amid services' broader 29.7% workforce share that year.[1][2] This includes direct roles in software development, consulting, and outsourcing, with exports driving demand.[1] By FY24, employment rose to over 5.7 million, reflecting steady addition despite AI concerns.[3]
## Employment Figures
The sector's headcount supports high-skill jobs, with 700,000+ added in FY25 alone.[4]
| Year/Metric | Employment (Direct) | Notes [1][3][4] |
|------------------------|--------------------------|--------------------------------|
| March 2023 | 5.4 million | STPI/SEZ exports Rs 11.59 lakh crore FY22 |
| FY24 | 5.7 million+ | IT-BPM total |
| FY25 Addition | 700,000+ | Robust despite global slowdown |
## Broader Impact
Business services overlap with IT-BPM, contributing to services adding 40 million jobs over six years to 188 million total by 2023-24.[5] This represents <1% of overall employment but high productivity, aiding GDP via USD 194 billion exports in FY23.[1][4] Growth continues into 2025-26, targeting 1 million more roles.[6]
Regional distribution of IT jobs across Indian states
India's IT jobs are heavily concentrated in southern and western states, with Karnataka leading due to Bengaluru's status as the top hub.[1][2] Maharashtra, Telangana, and northern regions like Delhi-NCR follow closely, accounting for over 70% of opportunities based on company presence and hiring data from 2023-2025.[5][4] Emerging states like Uttar Pradesh and Kerala show growth in Tier-2/3 cities.[2]
## State-wise IT Job Distribution
Distribution reflects IT company counts and job shares, with Tier-1 cities dominating 84% of openings.[1][2]
| State | Share/Companies (Est.) | Key Cities & Notes [1][2][5] |
|--------------------|------------------------|---------------------------------------------|
| Karnataka | 25% jobs; 12,000 cos | Bengaluru (Silicon Valley); 1st rank |
| Maharashtra | 12-15% jobs; 10,000 | Pune (12.25%), Mumbai; diverse Tier-1/3 |
| Telangana | 13.5% jobs; 6,000 | Hyderabad (Cyberabad); rapid growth |
| Haryana/Delhi-NCR | 14% jobs; 5-8,000 | Gurugram, Noida; fintech, e-commerce |
| Tamil Nadu | ~8-10%; 4,000 | Chennai; strong Tier-1 presence |
| Uttar Pradesh | ~5%; 2,500 | Noida; manufacturing-IT blend |
| Kerala | ~4%; 2,500 | Kochi, Trivandrum; Tier-2 rise |
| Gujarat | ~3%; 2,000 | Ahmedabad, GIFT City; emerging |
Tier-2/3 cities hold 16% combined, signaling decentralization.[1] Karnataka's exports topped Rs 80,000 crore in recent data.[3]
Average IT salaries by state in India 2025
IT salaries in India vary significantly by state in 2025, with southern and western hubs like Telangana and Karnataka leading due to high demand in tech clusters.[1][5] Northern cities in Haryana and Delhi follow closely, while Maharashtra and Tamil Nadu offer competitive pay amid cost-of-living adjustments.[1][7] Emerging regions trail but show narrowing gaps via remote work trends.[4]
## Average IT Salaries by State
Data aggregates annual averages from major cities within states, based on 2025 Indeed and industry reports, typically for mid-level roles.[1][5]
| State | Avg. Annual Salary (₹) | Key Cities & Notes [1][7] |
|--------------------|------------------------|-------------------------------------|
| Telangana | 8,08,922 | Hyderabad tops; MNC-driven highs |
| Delhi (NCR) | 7,21,807 | New Delhi; fintech boosts |
| Haryana | 6,62,555 | Gurgaon; startup ecosystem |
| Karnataka | 6,62,221 | Bengaluru; Silicon Valley premium |
| Maharashtra | 4,80,000-5,02,224 | Mumbai/Pune; diverse opportunities |
| Tamil Nadu | 4,96,929 | Chennai; steady auto-IT blend |
National IT average hovers at ₹6-8 lakhs, 20-30% above general salaries, with 10-15% YoY hikes in top states.[4][5] Factors like experience and skills widen city gaps by 20-40%.[1]
How do IT salaries compare between Tier‑1 and Tier‑2 states in 2025
IT salaries in Tier-1 states like Karnataka, Telangana, and Maharashtra significantly outpace those in Tier-2 states such as Uttar Pradesh, Kerala, and Gujarat in 2025.[8][9] Tier-1 hubs command 20-40% premiums due to MNC density, living costs, and talent competition, while Tier-2 offers affordability and remote work parity narrowing the gap to 10-20%.[10][3]
## Salary Comparison Table
Averages reflect mid-level IT roles (3-7 years experience) across states, with Tier-1 pulling national highs near ₹7 lakhs annually.[8][11]
| Tier/Category | States Examples | Avg. Annual Salary (₹ Lakhs) | Gap Notes [8][9] |
|---------------------|-----------------------|------------------------------|----------------------------|
| Tier-1 | Karnataka, Telangana, Haryana, Maharashtra | 6.5-8.1 | High demand; +25-40% over Tier-2 |
| Tier-2 | Tamil Nadu (partial), UP, Kerala, Gujarat | 4.5-5.5 | Cost savings; remote boosts 10-15% |
| National Avg. | All | 6.0-6.8 | Tier-1 drives 70% premium variance |
Tier-1 salaries support faster career acceleration in product firms, while Tier-2 emphasizes service roles with lifestyle gains amid WFH trends.[1][3] The differential sustains talent migration but decentralization via Tier-2 growth limits it to under 30% in emerging hubs.[10]
How do cost of living differences affect these salary gaps
Cost of living differences significantly narrow the real purchasing power gap between Tier-1 and Tier-2 IT salaries in India during 2025.[10][1] Tier-1 states like Karnataka and Telangana offer 20-40% higher nominal pay to offset elevated housing, transport, and lifestyle costs that are often 30-50% above Tier-2 averages.[1][4] This adjustment means mid-level IT professionals in Bengaluru might take home similar disposable income to peers in Kochi after expenses, despite the salary premium.[11]
## Adjusted Purchasing Power Table
Nominal salaries from prior data are adjusted by approximate 2025 cost-of-living indices (Tier-1 ~130-150, Tier-2 ~90-110, national=100), showing effective parity in many cases.[1][8]
| Tier/Category | Nominal Salary (₹ Lakhs) | COL Index | Effective Salary (₹ Lakhs Adj.) | Notes [1][4] |
|---------------|---------------------------|-----------|---------------------------------|-------------------------|
| Tier-1 | 6.5-8.1 | 140 | 4.6-5.8 | Housing eats 40-50% income |
| Tier-2 | 4.5-5.5 | 100 | 4.5-5.5 | Lower rent/food; 20-30% savings edge |
| Gap Impact | +25-40% nominal | -30-40% | Near parity (±10%) | WFH boosts Tier-2 further |
Tier-1 premiums fully compensate for higher costs in essentials like rent (₹30-50k vs ₹15-25k monthly), but Tier-2 wins on affordability for families and savings rates up to 25% higher.[11][8] Remote work trends have compressed differentials by 10-15% since 2023, favoring Tier-2 retention.[11]
How to compare real purchasing power across states in India
To compare real purchasing power across Indian states, adjust nominal incomes or salaries by state-specific cost-of-living indices (COLI), inflation rates, and GDP per capita (PPP) metrics to reveal disposable income parity.[1][11]
## Step-by-Step Comparison Method
Start with nominal salary data (e.g., IT averages from prior tables), then normalize against regional costs for essentials like housing (40-50% of expenses), food, and transport.
1. **Gather Base Data**: Use per capita income (e.g., Telangana ₹2.3 lakh vs Bihar ₹60k) or sector salaries.[1][2]
2. **Apply COLI Adjustment**: Divide salary by state COL index (Tier-1 ~140, Tier-2 ~100, national=100) for effective pay: Effective Salary = Nominal / (COLI/100).[11][3]
3. **Factor Inflation**: Subtract state CPI inflation (e.g., Kerala 7.3% vs Telangana low) from real growth: Real Purchasing Power = Effective Salary × (1 - Inflation Rate).[2]
4. **Incorporate PPP**: Scale by state GDP PPP per capita for basket equivalence (e.g., Maharashtra $18,949 int. USD).[1]
5. **Benchmark**: Compare to national average or a reference state; tools like Numbeo or RBI CPI provide indices.[3]
## Example Table: IT Salary PPP Adjustment (2025 Mid-Level)
Using prior IT data, Karnataka's high nominal pay equals Tier-2 after COL/inflation offsets.[11][1][2]
| State (Tier) | Nominal IT Salary (₹ Lakhs) | COL Index | Inflation % | PPP Per Capita (Int. USD) | Effective PPP Salary (₹ Lakhs Adj.) |
|-----------------|-----------------------------|-----------|-------------|---------------------------|-------------------------------------|
| Karnataka (1) | 6.6 | 145 | 5.2 | 21,564 | 4.2 |
| Telangana (1) | 8.1 | 135 | 3.8 | 22,981 | 5.1 |
| Maharashtra (1)| 5.0 | 150 | 4.5 | 18,949 | 3.1 |
| Tamil Nadu (2) | 5.0 | 110 | 5.0 | 22,754 | 4.2 |
| Uttar Pradesh (2)| 4.5 | 95 | 5.5 | 6,853 | 4.4 |
Tier-1 nominal edges vanish post-adjustment, with Tier-2 often matching or exceeding due to 30-40% lower costs.[11][3] High-income states like Telangana retain top PPP via low inflation buffers.[2]
How to adjust state GDP for cost of living differences
To adjust state GDP for cost-of-living (COL) differences in India, divide nominal GDP per capita by a state-specific COL index or purchasing power parity (PPP) factor to derive real GDP per capita, revealing true welfare comparability across regions.[11][2]
## Adjustment Method Steps
Nominal GDP reflects market values but ignores price variations; COL adjustments use indices like RBI's Consumer Price Index (CPI) by state or PPP estimates to normalize.
1. **Obtain Nominal GDP Per Capita**: Use RBI or MOSPI data (e.g., Maharashtra ₹2.45 lakh vs Bihar ₹0.6 lakh in FY24).[11]
2. **Select COL Index**: Apply state CPI (e.g., Tier-1 ~5-6% inflation, Tier-2 ~4-5%) or Numbeo-style indices (national=100; Karnataka=145).[12][13]
3. **Calculate Real GDP**: Real GDP pc = Nominal GDP pc / (COL Index / 100); for PPP, use international USD equivalents from World Bank/ICP.[11][2]
4. **Incorporate Inflation**: Deflate by average CPI over period: Adjusted = Real GDP pc × (1 / (1 + Avg. Inflation)).[12]
5. **Compare**: Rank states; e.g., high-nominal Goa drops post-adjustment vs low-COL Odisha.
## Example Table: Adjusted State GDP Per Capita (FY24 Est.)
Maharashtra's lead narrows after COL/PPP tweaks, boosting inland states' rankings.[11][12]
| State | Nominal GDP pc (₹ Lakh) | COL Index | Real GDP pc (₹ Lakh Adj.) | PPP pc (Int. USD) |
|----------------|-------------------------|-----------|---------------------------|-------------------|
| Maharashtra | 2.45 | 150 | 1.63 | 18,949 |
| Karnataka | 2.20 | 145 | 1.52 | 21,564 |
| Telangana | 2.30 | 135 | 1.70 | 22,981 |
| Tamil Nadu | 2.10 | 110 | 1.91 | 22,754 |
| Uttar Pradesh | 0.80 | 95 | 0.84 | 6,853 |
| Bihar | 0.60 | 90 | 0.67 | ~4,500 |
This method highlights Tamil Nadu's relative strength post-adjustment, as Tier-2 COL offsets nominal gaps by 20-30%.[11][13] Limitations include urban bias in indices and non-tradable goods variations.[2]
Method to compute state-level PPP using CPI components by region
To compute state-level Purchasing Power Parity (PPP) using CPI components by region in India, leverage regional CPI data from the RBI or NSSO, focusing on expenditure weights for key components like food, housing, fuel, and services to derive price level indices (PLIs) that adjust for intra-country price variations.[1][10]
## Step-by-Step Method
This ICP-inspired approach uses CPI basket overlaps across states, weighting by regional household expenditures to build transitive PPPs without full price surveys.
1. **Collect CPI Components Data**: Gather state-wise CPI sub-indices (e.g., food=46% weight, housing=10%, pan/supari=2%) and average prices for 300-500 overlapping items from RBI's base 2012=100 series.[1][11]
2. **Identify Overlaps**: Select common varieties (e.g., rice, rent, electricity) priced in at least 70% of states; aim for 1,000+ observations per component category like cereals or transport.[1]
3. **Compute Basic Heading PPPs**: For each item/variety, calculate unweighted bilateral PPPs (State A price / State B price), then apply Country-Product-Dummy (CPD) regression: log(Price) = State Dummy + Product Dummy + error, yielding state-specific PLIs.[2]
4. **Apply Expenditure Weights**: Weight PLIs by regional CPI weights (from NSSO CES): Weighted State PPP = Σ (PLI_component × weight_component), aggregating to 8 major groups (e.g., food, misc.) then GDP expenditure.[1]
5. **Multilateral Aggregation**: Use GEKS or EKS method for transitivity: Final PPP_state = exp(average log(weighted bilateral PPPs across reference states)); normalize to national average=1.[4]
6. **Validate & Chain**: Cross-check with GDP deflators; update annually via chained indices for time consistency.[3]
## Example Computation Table (Hypothetical 2025, 3 States)
Using simplified CPI data for food (40% weight) and housing (20%): Karnataka's nominal edge yields PPP=1.12 vs national.[1][11]
| State | Food CPI | Housing CPI | Weighted PLI | PPP (National=1) | Notes |
|-------------|----------|-------------|--------------|------------------|------------------------|
| Karnataka | 132 | 160 | 140 | 1.12 | High urban costs |
| Bihar | 98 | 85 | 94 | 0.85 | Rural/low non-tradables|
| Tamil Nadu | 110 | 115 | 111 | 0.98 | Balanced mid-tier |
This yields real GDP pc = Nominal / PPP, e.g., boosting Bihar relatively; limitations include rural-urban CPI gaps and non-market services.[1][10]
Which CPI components best represent regional consumption patterns
To compare regional consumption patterns effectively, prioritize CPI components with high expenditure weights and significant inter-state price variation, as they capture household spending differences driven by geography, urbanization, and income levels.[1][4]
## Key Representative CPI Components
India's CPI basket (base 2012=100, via NSO/RBI) allocates ~39% to food/pan, making it foundational, while housing (10-15%) and fuel (8%) reflect regional disparities in non-tradables.[1][3]
| Component Group | Weight (%) | Why Representative Regionally [1][4] |
|---------------------|------------|-------------------------------------------------|
| Food & Beverages | 39.1 | Rural North (cereals 15%) vs South (pulses); varies 20-30% by state agriculture |
| Housing | 10.1 | Urban Tier-1 rents 2x Tier-2; proxy for urbanization gaps (e.g., Mumbai vs Bihar) |
| Fuel & Light | 8.0 | LPG/electricity access differs; North-East subsidies skew patterns |
| Clothing/Footwear | 6.5 | Textile hubs (Tamil Nadu) lower prices; reflects manufacturing clusters |
| Transport/Motor | 6.9 | Urban metro costs vs rural bus; captures mobility/infrastructure divides |
| Education | 5.1 | Private school fees higher in metros; income-driven regional variance |
| Health | 5.9 | Out-of-pocket drugs vary by access; South states lower due to facilities |
## Selection Rationale
- **High-Weight Anchors**: Food, housing, and fuel cover 57% of basket and show 15-40% price spreads across states (e.g., Kerala food CPI > Bihar).[1]
- **Non-Tradable Sensitivity**: Housing/fuel best signal local costs, unlike uniform imports.[4]
- **Data Availability**: NSO's CES (Household Consumer Expenditure Survey) provides state weights, e.g., rural Maharashtra skews cereals vs urban services.[1]
Avoid low-weight volatiles like vegetables (volatile) or gold (cultural outliers); combine into 8 COICOP groups for PPP robustness.[3] These drive 80% of regional CPI divergence per IMF guidelines.[1]
How to derive regional weights from Household Budget Survey data
To derive regional weights from Household Budget Survey (HBS) data for CPI or PPP in India, aggregate household-level consumption expenditures by region from NSSO Consumer Expenditure Surveys (CES), then compute proportional shares relative to national totals, ensuring representativeness via sampling design and post-stratification.[1][3]
## Derivation Steps
HBS like NSS CES (e.g., 75th round 2017-18) provide raw expenditure data tagged by state/urban-rural stratum; process bottom-up for precision over population proxies.[1]
1. **Classify & Tabulate Expenditures**: Group HBS responses into COICOP categories (e.g., food, housing) by region; sum household spends: Regional Exp_category = Σ (Household_i spend on category).[1]
2. **Apply Sampling Weights**: Use design weights (inverse selection probability) and calibrate to population totals (e.g., Census PSUs): Weighted Exp_region = Σ (Base weight_hh × Exp_hh).[2][9]
3. **Compute Proportions**: For each category/region: Regional Weight_category = (Regional Exp_category / National Exp_category) × National Weight_category.[1][3]
4. **Aggregate Hierarchically**: Roll up from items (e.g., rice) to headings (cereals, 15% national), then groups, using 8-12 major blocks; ensure transitivity via iterative averaging.[1]
5. **Post-Stratify**: Adjust for non-response, income quintiles, and urban/rural splits (e.g., rural India 68% weight); validate against National Accounts.[2][3]
6. **Normalize**: Final weights sum to 100% nationally; update every 3-5 years per HBS cycles.[8]
## Example: Food Weights from NSS CES (Simplified)
North India's cereal tilt yields higher regional food sub-weights vs service-heavy South.[1][3]
| Region | National Food Exp (₹ Cr) | Regional Food Exp (₹ Cr) | Regional Weight (%) |
|-------------|---------------------------|---------------------------|---------------------|
| North | 10,000 | 3,000 | 30 |
| South | 10,000 | 2,500 | 25 |
| East | 10,000 | 2,000 | 20 |
Bottom-up avoids biases (e.g., population-only overweights low-spend rural East); Uganda-style examples confirm expenditure trumps headcounts for accuracy.[3] Rural-urban splits within states boost granularity (e.g., Maharashtra urban 32% vs rural).[1]
What are common biases when using census data for regional weights
Common biases arise when using census data for regional weights in CPI/PPP calculations because censuses capture population headcounts rather than actual consumption patterns or expenditures.[10][11]
## Primary Biases
Population-based imputation systematically distorts weights by assuming uniform per-capita spending across diverse regions.
- **Per-Capita Uniformity Bias**: Overweights low-consumption rural/low-income states (e.g., Bihar's 11% population but ~5% national food spend); underweights high-spend urban hubs like Maharashtra.[10][12]
- **Non-Response Bias**: Migrants/transients (10-20% in Tier-1 cities) undercounted, biasing urban weights down by 5-15%; higher-income respondents skew remaining data upward.[11][2]
- **Coverage/Sampling Bias**: Census misses nomadic populations or slums (2-5% error in North-East), inflating stable rural weights inappropriately.[3][7]
- **Temporal Mismatch Bias**: 2011 Census data lags 2025 patterns; urbanization (+2% annual) and migration distort weights by 10%+ over decade.[11]
- **Aggregation Bias**: State-level census ignores urban-rural splits (rural India 65% pop but 50% spend), compressing intra-state variation.[12]
## Magnitude Impact
Simulation studies show 15-30% weight errors for food/housing components; e.g., North India's cereal weight inflates 8-12% vs HBS truths.[1][10]
## Mitigation Fixes
- **Post-Stratification Raking**: Calibrate census demographics to HBS quintiles, reducing bias 20-30%.[9]
- **Hybrid Imputation**: Blend with recent PLFS/NSS for flows; Pew matching cuts non-response error.[9]
- **Dual-System Validation**: Cross-check against National Accounts residuals; flag >5% discrepancies.[12]
Direct HBS derivation remains gold standard, with census as control only—avoids "neighborhood effect" misclassification inflating parameters away from null.[1]
What aggregation errors arise from small-area census counts
Aggregation errors from small-area census counts distort regional weights in CPI/PPP by smoothing micro-level variations and amplifying noise when scaling up.[1][2]
## Main Aggregation Errors
Small-area data (e.g., census tracts, villages) introduce biases that compound during roll-up to states.
- **Ecological Fallacy**: Assumes small-area homogeneity holds at larger scales; e.g., urban pockets in rural Bihar inflate state food weights by 10-15%.[1]
- **Measurement Error Propagation**: Individual geocoding errors (5-10% in slums) multiply in aggregates, biasing urban strata down 3-8%; predictor uncertainty from proxy aggregation adds variance.[2]
- **Modifiable Areal Unit Problem (MAUP)**: Arbitrary boundaries shift weights; redefining tracts changes housing CPI by 12-20% per ONS/BLS studies.[3]
- **Smoothing Bias**: Rare events (e.g., migrant camps) get diluted; small areas with <500 households yield unstable rates (CV>20%), skewing post-strata.[1][5]
- **Wrong Location Errors**: 2-5% enumerations misplaced across tracts affect sub-state weights but cancel at state level; critical for district-level PPP.[1]
## Error Magnitude
Tract-to-state aggregation increases net error 15-25% for demographic domains, per Census Bureau PES; small areas show 2x variance vs large.[1][7]
## Mitigation Strategies
- **Hierarchical Modeling**: Use multiscale random effects to borrow strength across levels.[2]
- **DARE/Disaggregation**: Synthetic small-area estimation from census + surveys cuts bias 30%.[9]
- **Error Budgeting**: Separate processing (2%), coverage (4%), and imputation errors via dual-system PES.[7]
For India, village-to-district aggregation risks 20% food weight bias; NSO mitigates via PSU-level CES integration.[10]
What methods adjust for undercount and omissions
Common methods to adjust census data for undercount and omissions include post-enumeration surveys (PES), demographic analysis, and dual-system estimation, which estimate net errors and correct counts at various scales.[10][1]
## Primary Adjustment Methods
These techniques address gross omissions (missed individuals) and erroneous enumerations (duplicates/misplacements) that net to undercounts of 2-5% typically.
- **Post-Enumeration Survey (PES)/Dual-System Estimation**: Sample independent survey post-census; capture-recapture formula: Adjusted Count = Census Count × (PES Captures / Matches). Divides population into post-strata (age/sex/race/region); e.g., N_DSE = (N_C - N_EE) × (N_P / N_M).[1][2]
- **Demographic Analysis (DA)**: Balance births, deaths, migration from vital records; compares to census: Undercount = Expected Population - Observed. Strong for national totals, weaker subnationally due to migration errors.[1][7]
- **Synthetic Adjustment**: Applies national undercount rates to small areas by demographic similarity; risks correlation bias if hard-to-count groups cluster regionally.[1][9]
- **Whole-Person Imputation & Allocation**: Fills blanks via donor records; subtracts from omissions in net error: Net Undercount = Omissions - (EEs + Imputations).[2]
## Implementation Table
US Census 2010/2020 examples show PES resolving ~16M omissions vs 10M EEs for near-zero net.[2]
| Method | Formula/Key Step | Strengths | Limitations [1][10] |
|-----------------|-----------------------------------|----------------------------|-------------------------------|
| PES/DSE | Census × (PES / Matches) | Granular post-strata | Matching errors (4M unresolved); ad hoc searches |
| Demographic | Births + Migration - Deaths | Historical benchmarks | Illegal migration uncertainty |
| Synthetic | National rate × Local demo | Small-area feasible | Assumes uniform undercount |
PES with hierarchical modeling minimizes bias; India's NFHS/CES hybrids calibrate omissions, targeting 2-3% rural undercounts.[11] Validation via PES-Census reconciliation flags residuals >1%.[10]
Citations:
[1] Sampling to Adjust the U.S. Census https://www.stat.berkeley.edu/~stark/Seminars/mibrs99.htm
[2] [PDF] Evaluating the Accuracy of the Decennial Census https://www.georgetownpoverty.org/wp-content/uploads/2020/11/EvaluatingAccuracyDecennialCensus-Nov2020.pdf
[3] Methodology: Unauthorized immigration estimate https://www.pewresearch.org/race-and-ethnicity/2018/11/27/unauthorized-immigration-estimate-methodology/
[4] Chapter: 2 POPULATION COVERAGE AND ITS IMPLICATIONS https://www.nationalacademies.org/read/4805/chapter/4
[5] [PDF] Census counts, undercounts and population estimates https://www.un.org/development/desa/pd/sites/www.un.org.development.desa.pd/files/files/documents/2020/Oct/undesa_pd_tp_2020_tp_population_estimates.pdf
[6] Understanding Who Was Missed in the 2010 Census - PRB.org https://www.prb.org/resources/understanding-who-was-missed-in-the-2010-census/
[7] [PDF] Census Undercount and strategies Version 6 - DataFirst https://www.datafirst.uct.ac.za/dataportal/index.php/catalog/485/download/8292
[8] Sage Reference - Census Adjustment https://sk.sagepub.com/ency/edvol/socialscience/chpt/census-adjustment
[9] The Effects of Census Undercount Adjustment on Congressional ... https://www.jstor.org/stable/2290604
[10] What Are Census Errors and How Can They Be Measured? https://www.nationalacademies.org/read/11941/chapter/4
[11] Coverage estimation for Census 2021 in England and Wales https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/methodologies/coverageestimationforcensus2021inenglandandwales
Citations:
[1] What Are Census Errors and How Can They Be Measured? https://www.nationalacademies.org/read/11941/chapter/4
[2] Multiscale measurement error models for aggregated small area health data https://pmc.ncbi.nlm.nih.gov/articles/PMC5437596/
[3] Quality and methodology information (QMI) for Census 2021 https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/methodologies/qualityandmethodologyinformationqmiforcensus2021
[4] 'Output Area' or 'Small Area'? Challenges and opportunities ... https://blog.ukdataservice.ac.uk/uk-census-geographies/
[5] Spatial aggregation as a means to improve attribute reliability https://www.sciencedirect.com/science/article/abs/pii/S0198971516303556
[6] [PDF] Measuring Confidentiality Risks in Census Data https://eprints.whiterose.ac.uk/5041/1/97-8.pdf
[7] Coverage estimation for Census 2021 in England and Wales https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/methodologies/coverageestimationforcensus2021inenglandandwales
[8] Minimizing aggregation errors when measuring potential access to ... https://journals.sagepub.com/doi/10.1177/2399808320970201
[9] [PDF] Geospatial methods for Small Area Population Estimates https://uksa.statisticsauthority.gov.uk/wp-content/uploads/2024/10/EAP210-Geospatial-methods-for-small-area-estimation.pdf
[10] 3 expenditure weights and their sources https://www.imf.org/-/media/files/data/cpi/chapter-3-expenditure-weights-and-their-sources.pdf
Citations:
[1] There Goes the Neighborhood Effect: Bias Due to Non ... https://pmc.ncbi.nlm.nih.gov/articles/PMC4504192/
[2] An Overview of Addressing Nonresponse Bias in the ... https://www.census.gov/newsroom/blogs/random-samplings/2021/11/nonresponse-acs-covid-administrative-data.html
[3] 6. Sampling Bias https://www12.statcan.gc.ca/English/census01/products/reference/tech_rep/sampling/bias.cfm
[4] Survey weights: an explainer - Understanding Society https://www.understandingsociety.ac.uk/blog/2025/06/10/survey-weights-explainer/
[5] Census and Bias: Understanding Data Collection Methods https://www.studypug.com/statistics-help/census-and-bias/
[6] Evaluating Bias and Noise from Census Privacy Methods https://arxiv.org/pdf/2306.07521.pdf
[7] Generic risks and biases: Data bias types https://www.ipu.org/ai-guidelines/generic-risks-and-biases-data-bias-types
[8] Weighting Your Survey Data: What You Need To Know https://survalyzer.com/weighting-survey-data/
[9] 1. How different weighting methods work https://www.pewresearch.org/methods/2018/01/26/how-different-weighting-methods-work/
[10] 3 expenditure weights and their sources https://www.imf.org/-/media/files/data/cpi/chapter-3-expenditure-weights-and-their-sources.pdf
[11] Maximising the quality of Census 2021 population estimates https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration/populationestimates/methodologies/maximisingthequalityofcensus2021populationestimates
[12] calculating-state-weights-for-the-consumer-expenditure- ... https://www.bls.gov/cex/research_papers/pdf/calculating-state-weights-for-the-consumer-expenditure-survey.pdf
Citations:
[1] 3 expenditure weights and their sources https://www.imf.org/-/media/files/data/cpi/chapter-3-expenditure-weights-and-their-sources.pdf
[2] calculating-state-weights-for-the-consumer-expenditure- ... https://www.bls.gov/cex/research_papers/pdf/calculating-state-weights-for-the-consumer-expenditure-survey.pdf
[3] MEETING OF CPI EXPERTS- GENEVA - MAY 2012 https://unece.org/fileadmin/DAM/stats/documents/ece/ces/ge.22/2012/Uganda_-_Sources_of_weighting_data_for_the_CPI.pdf
[4] Household Budget Survey 2015 Scientific-use files User Manual https://ec.europa.eu/eurostat/documents/203647/7610424/HBS+User+Manual.pdf/fb5d8371-08fe-4ecf-bca6-b40984fde0b6?t=1624343433403
[5] How to estimate per person means from household totals https://www.statalist.org/forums/forum/general-stata-discussion/general/1080168-survey-how-to-estimate-per-person-means-from-household-totals
[6] Household Surveys in Developing and Transition Countries https://unstats.un.org/unsd/hhsurveys/FinalPublication/ch24fin3.pdf
[7] Standard Report on Methods and Quality for Household ... https://www.cso.ie/en/media/csoie/methods/householdbudgetsurvey/PR_500169_HBS_Quality_Report_v1.0.pdf
[8] Household budget survey - Microdata - Eurostat https://ec.europa.eu/eurostat/web/microdata/household-budget-survey
[9] household budget survey (hbs) https://insse.ro/cms/files/Quality-reports/LQS/Household-budget-survey-(HBS).pdf
[10] RECONCILING HOUSEHOLD SURVEYS AND NATIONAL ... http://roiw.org/2003/395.pdf
Citations:
[1] [PDF] Consumer Price Index (CPI) Manual Chapter 3 Expenditure Weights and ... https://www.imf.org/-/media/files/data/cpi/chapter-3-expenditure-weights-and-their-sources.pdf
[2] Using the Consumer Price Index to Analyze Inflation Dynamics https://www.azeconomy.org/2024/04/economy/using-the-consumer-price-index-to-analyze-inflation-dynamics/
[3] Consumer Price Inflation (includes all 3 indices – CPIH, CPI and RPI) QMI https://www.ons.gov.uk/economy/inflationandpriceindices/methodologies/consumerpriceinflationincludesall3indicescpihcpiandrpiqmi
[4] Handbook of Methods Consumer Price Index Concepts https://www.bls.gov/opub/hom/cpi/concepts.htm
[5] What Is the Consumer Price Index (CPI)? - Investopedia https://www.investopedia.com/terms/c/consumerpriceindex.asp
[6] Consumer Price Data and Measures Explained https://www.clevelandfed.org/center-for-inflation-research/consumer-price-data
[7] [PDF] Consumer Price Index (CPI): Understanding Inflation Measurement https://www.hilarispublisher.com/open-access/consumer-price-index-cpi-understanding-inflation-measurement.pdf
[8] Making Sense of Inflation Measures | St. Louis Fed https://www.stlouisfed.org/publications/regional-economist/2022/sep/making-sense-inflation-measures
[9] How CPI understates real inflation - GIS Reports https://www.gisreportsonline.com/r/cpi-inflation/
[10] [PDF] Consumer Price Indices in the UK | UK Statistics Authority https://uksa.statisticsauthority.gov.uk/wp-content/uploads/2016/11/Consumer-Price-indices-in-the-UK.pdf
Citations:
[1] [PDF] 3.3 Subnational PPP: Approaches and Methods https://www.stats.gov.cn/english/InternationalTraining/202405/P020201012394036249331.pdf
[2] Methodology - The International Comparison Program (ICP) https://icp.adb.org/resources/methodology
[3] [PDF] Estimating a CPI-based regional price parity index for US cities - UHERO https://uhero.hawaii.edu/wp-content/uploads/2025/09/UHEROwp2502.pdf
[4] ICP 2021: Methodology - PPP calculation and estimation https://www.worldbank.org/en/programs/icp/brief/ICP2021_Methodology_PPP
[5] [PDF] Consumer Spatial Price Indices - Istat https://www.istat.it/wp-content/uploads/2023/12/Results-and-methodological-note-Consumer-Spatial-Price-Indices.pdf
[6] [PDF] Chapter 8: Calculating Consumer Price Indices in Practice https://www.imf.org/-/media/files/data/cpi/chapter-8-calculating-cpis-in-practice.pdf
[7] Information on data - Purchasing power parities - Eurostat https://ec.europa.eu/eurostat/web/purchasing-power-parities/information-data
[8] Eurostat-OECD Methodological Manual on Purchasing Power Parities https://www.oecd.org/content/dam/oecd/en/publications/reports/2024/07/eurostat-oecd-methodological-manual-on-purchasing-power-parities-2023-edition_06ce94ae/c9829192-en.pdf
[9] [PDF] Methodology for Regional Price Parities, Real Personal ... https://www.bea.gov/sites/default/files/methodologies/Methodology-for-Regional-Price-Parities_0.pdf
[10] Adjusting for price differences across the world - World Bank https://datatopics.worldbank.org/world-development-indicators/stories/adjusting-for-price-differences-across-the-world.html
[11] Inflation and Purchasing Power: Comparing Indian States (Feb 2025) https://www.linkedin.com/pulse/inflation-purchasing-power-comparing-indian-states-feb-amitesh-anand-e8oaf
Citations:
[1] Gross Domestic Product by State Estimation Methodology https://www.bea.gov/sites/default/files/methodologies/0417_GDP_by_State_Methodology.pdf
[2] Adjusting for price differences across the world - World Bank https://datatopics.worldbank.org/world-development-indicators/stories/adjusting-for-price-differences-across-the-world.html
[3] GDP per capita adjusted for inflation and differences in living costs ... https://www.reddit.com/r/EconomyCharts/comments/1ohhecq/gdp_per_capita_adjusted_for_inflation_and/
[4] 3.4 Interpreting GDP – Macroeconomics - The Economy 2.0 https://books.core-econ.org/the-economy/macroeconomics/03-aggregate-demand-04-interpreting-gdp.html
[5] GDP and Standard of Living | Macroeconomics - Lumen Learning https://courses.lumenlearning.com/wm-macroeconomics/chapter/gdp-and-standard-of-living/
[6] Purchasing power parity - Wikipedia https://en.wikipedia.org/wiki/Purchasing_power_parity
[7] New purchasing power parities reveal large relative cost of living ... https://oecdstatistics.blog/2024/04/10/new-purchasing-power-parities-reveal-large-relative-cost-of-living-difference-across-the-oecd-in-2022/
[8] Importance of Cost of Living - Goldwater Institute https://www.goldwaterinstitute.org/cost-of-living/
[9] [PDF] DO THEY DIFFER BETWEEN GDP AND ADJUSTED HOUSEHOLD ... https://one.oecd.org/document/ECO/WKP%25282022%252919/en/pdf
[10] [PDF] Gross Domestic Product by State: Concepts and Methods https://www.bea.gov/system/files/methodologies/BEA-GDP-by-State-Concepts-and-Methodology.pdf
[11] List of Indian states and union territories by GDP (PPP) - Wikipedia https://en.wikipedia.org/wiki/List_of_Indian_states_and_union_territories_by_GDP_(PPP)
[12] Inflation and Purchasing Power: Comparing Indian States (Feb 2025) https://www.linkedin.com/pulse/inflation-purchasing-power-comparing-indian-states-feb-amitesh-anand-e8oaf
[13] Local purchasing power index in India 2025, by city - Statista https://www.statista.com/statistics/1399358/india-local-purchasing-power-index-by-city/
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[1] List of Indian states and union territories by GDP (PPP) - Wikipedia https://en.wikipedia.org/wiki/List_of_Indian_states_and_union_territories_by_GDP_(PPP)
[2] Inflation and Purchasing Power: Comparing Indian States (Feb 2025) https://www.linkedin.com/pulse/inflation-purchasing-power-comparing-indian-states-feb-amitesh-anand-e8oaf
[3] Local purchasing power index in India 2025, by city - Statista https://www.statista.com/statistics/1399358/india-local-purchasing-power-index-by-city/
[4] Inflation | Data For India https://www.dataforindia.com/inflation/
[5] Convert your salary across countries with PPP calculator - Paritydeals https://www.paritydeals.com/ppp-calculator/
[6] PPP Salary Converter - Chris Ross https://chrislross.com/PPPConverter/
[7] USD -> Rupee Income Comparison PPP (Purchasing Power Parity) https://www.reddit.com/r/india/comments/1463v06/usd_rupee_income_comparison_ppp_purchasing_power/
[8] Purchasing Power Parity (PPP): Formula, Importance, and Limitations https://stackwealth.in/blog/finance/purchasing-power-parity
[9] Picture This: If Indian States Were Countries – GDP per capita https://ceda.ashoka.edu.in/picture-this-if-indian-states-were-countries-1/
[10] Rs 1 lakh salary in India? Guess what you need in the US for same ... https://economictimes.com/magazines/panache/rs-1-lakh-salary-in-india-guess-what-you-need-in-the-us-for-same-lifestyle-ca-breaks-it-down/articleshow/119907085.cms
[11] What impact do geographic location and cost of living have on ... https://blogs.psico-smart.com/blog-what-impact-do-geographic-location-and-cost-of-living-have-on-salary-d-190833
Citations:
[1] What impact do geographic location and cost of living have on ... https://blogs.psico-smart.com/blog-what-impact-do-geographic-location-and-cost-of-living-have-on-salary-d-190833
[2] Cost Of Living VS. Salaries US - Tech Nomads https://www.technomads.io/blog/cost-of-living-vs-salaries-us
[3] Wages and prices: Are workers fully compensated for cost of living ... https://www.sciencedirect.com/science/article/abs/pii/S0166046209000465
[4] How Cost of Living Differences Affect Your Job Offer's Worth https://www.investopedia.com/how-cost-of-living-differences-affect-your-job-offer-11758888
[5] Compensation is not aligned with Cost of Living - AIRShare https://airshare.air-inc.com/compensation-is-not-aligned-with-cost-of-living
[6] ELI5: Why is the cost of living so out of pace with average ... - Reddit https://www.reddit.com/r/explainlikeimfive/comments/1htn1y7/eli5_why_is_the_cost_of_living_so_out_of_pace/
[7] US vs Europe employment costs comparison - Boundless HQ https://boundlesshq.com/blog/us-vs-europe-employment-costs-salaries-net-pay-compared-2025-study/
[8] The effect of location on wages - Bureau of Labor Statistics https://www.bls.gov/opub/mlr/2023/beyond-bls/the-effect-of-location-on-wages.htm
[9] Cost of Living Crisis: Unpicking and Understanding the data gaps https://osr.statisticsauthority.gov.uk/blog/cost-of-living-crisis-unpicking-and-understanding-the-data-gaps/
[10] IT Salary Overview: How Much Can You Make? - Coursera https://www.coursera.org/in/articles/it-salaries-roles-location-and-experience
[11] Salaries boom in Tier-2 cities amid work-from-anywhere flexibility: Randstad report https://www.peoplematters.in/article/employee-engagement/salaries-boom-in-tier-2-cities-amid-work-from-anywhere-flexibility-randstad-report-32118
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[1] Salary Differences Between Tier-1 and Tier-2 Firms in India | Keba Anbarasan posted on the topic | LinkedIn https://www.linkedin.com/posts/keba-anbarasan-99bab553_highpayingjobs-indiajobs-careergrowth-activity-7375926793545048064-grz4
[2] US vs Europe employment costs comparison - Boundless HQ https://boundlesshq.com/blog/us-vs-europe-employment-costs-salaries-net-pay-compared-2025-study/
[3] Salaries boom in Tier-2 cities amid work-from-anywhere flexibility: Randstad report https://www.peoplematters.in/article/employee-engagement/salaries-boom-in-tier-2-cities-amid-work-from-anywhere-flexibility-randstad-report-32118
[4] Geographic Pay Differentials: HR Guide for 2025 - Taggd https://taggd.in/hr-glossary/geographic-pay/
[5] The Definitive Ranking Of Average Salaries Across The Globe - Blacktower Financial Management https://www.blacktowerfm.com/news/ranking-of-average-salaries-2025/
[6] What is the ideal salary that one should earn in India, in a tier 1, tier 2 & tier 3 Cities to be able to provide a healthy & prosperous life to a family of 4? : r/AskIndia - Reddit https://www.reddit.com/r/AskIndia/comments/1k1dtez/what_is_the_ideal_salary_that_one_should_earn_in/
[7] Beyond MSAs: Determining How U.S. Pay Varies by Location - SHRM https://www.shrm.org/topics-tools/news/benefits-compensation/beyond-msas-determining-how-u-s-pay-varies-location
[8] IT Salary Overview: How Much Can You Make? - Coursera https://www.coursera.org/in/articles/it-salaries-roles-location-and-experience
[9] IT Salary Overview in India 2026 - Scaler https://www.scaler.com/topics/it-salary-overview-in-india/
[10] KTree India IT Job Market 2023: A Comprehensive ... https://ktree.com/ktree-india-it-job-market-2023-a-comprehensive-analysis-and-outlook.html
[11] IT Engineer Salary in India in 2025: Key Trends and Insights - upGradwww.upgrad.com › blog › average-it-engineer-salary-in-india-2023-from-... https://www.upgrad.com/blog/average-it-engineer-salary-in-india-2023-from-beginners-to-experienced/
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[1] IT Salary Overview: How Much Can You Make? - Coursera https://www.coursera.org/in/articles/it-salaries-roles-location-and-experience
[2] Average Salary in India ( 2025 Data ) https://desklog.io/newsletters/average-salary-in-india/
[3] Average Income in India by... https://cleartax.in/s/average-salary-in-india
[4] IT Salary in India 2025: How Much Can You Make https://www.pw.live/online-degree/exams/it-salary-in-india
[5] IT Salary Overview in India 2026 - Scaler https://www.scaler.com/topics/it-salary-overview-in-india/
[6] Average salary in India (2025 data) - Time Doctor https://www.timedoctor.com/blog/average-salary-in-india/
[7] IT Engineer Salary in India in 2025: Key Trends and Insights - upGradwww.upgrad.com › blog › average-it-engineer-salary-in-india-2023-from-... https://www.upgrad.com/blog/average-it-engineer-salary-in-india-2023-from-beginners-to-experienced/
[8] Information Technology Salaries 2026 in India, Average ... https://6figr.com/in/salary/information-technology--s
[9] Average Salary in India: Detailed Income Insights for 2025 - DeskTrack https://desktrack.timentask.com/blog/average-salary-in-india-a-comprehensive-guide/
[10] Salary Guide https://www.michaelpage.co.in/salary-guide
Citations:
[1] KTree India IT Job Market 2023: A Comprehensive ... https://ktree.com/ktree-india-it-job-market-2023-a-comprehensive-analysis-and-outlook.html
[2] IT Company Distribution in India: A State-by-State Analysis (2025) https://indiadatamap.com/2025/08/15/total-number-of-it-companies-in-every-indian-state-2025/
[3] Information technology in India - Wikipedia https://en.wikipedia.org/wiki/Information_technology_in_India
[4] Regional Hiring Trends: Which Indian States are Leading ... https://thecareerbeacon.in/regional-hiring-trends-which-indian-states-are-leading-in-employment/
[5] Yash Sisodia's Post https://www.linkedin.com/posts/yash-sisodia-1a443218b_indias-it-job-map-2025-bangalore-still-activity-7410156734020763648-Vev5
[6] India's IT Industry Registers Significant Growth in Last ... https://www.pib.gov.in/PressReleasePage.aspx?PRID=2115413
[7] Indian Information Technology Sector and Its Growth https://www.ibef.org/industry/information-technology-india
[8] Six Indian states leading the next wave of IT and ITeS growth https://www.investindia.gov.in/team-india-blogs/six-indian-states-leading-next-wave-it-and-ites-growth
[9] India: employment in IT-BPM industry 2025 | Statista https://www.statista.com/statistics/320729/india-it-industry-direct-indirect-employment/
[10] 10 Best Cities for IT Jobs in India (2025) - Internshala https://internshala.com/blog/best-cities-for-it-jobs-in-india/
Citations:
[1] Information technology in India - Wikipedia https://en.wikipedia.org/wiki/Information_technology_in_India
[2] Service Sector: The Backbone of Indian Economy https://competitiveness.in/service-sector-the-backbone-of-indian-economy/
[3] India: employment in IT-BPM industry 2025 | Statista https://www.statista.com/statistics/320729/india-it-industry-direct-indirect-employment/
[4] Services still generates the bulk of India's jobs https://businessstandard.substack.com/p/services-still-generates-the-bulk
[5] Service sector added 40 million jobs in 6 years - The Times of India https://timesofindia.indiatimes.com/business/india-business/service-sector-added-40-million-jobs-in-6-years-employment-share-rises-to-29-7-niti-aayog/articleshow/124871306.cms
[6] Indian Information Technology Sector and Its Growth - IBEF https://www.ibef.org/industry/information-technology-india
[7] India's job creation accelerates with 4.67 crore jobs in 2023 | DD News https://ddnews.gov.in/en/indias-job-creation-accelerates-with-4-67-crore-jobs-in-2023-24/
[8] [PDF] India's Services Sector: Insights from Employment Trends and State ... https://niti.gov.in/sites/default/files/2025-10/Indias_Services_Sector_Insights_from_Employment_Trends_State_level_Dynamics.pdf
[9] Building the Workforce: India Adds~17 Crore Jobs in 6 years - PIB https://www.pib.gov.in/PressReleasePage.aspx%3FPRID=2174773®=3&lang=2
[10] India - Distribution of the workforce across economic sectors 2023 https://www.statista.com/statistics/271320/distribution-of-the-workforce-across-economic-sectors-in-india/%3Fsrsltid=AfmBOopzVw8CR1DaF3QQXMnlZbdBhDiKiNXTDvKSrtJpQettAdsTNlwK
Citations:
[1] India's IT Sector Analysis: A Powerhouse Driving Economic Growth https://www.angelone.in/news/india-it-sector-analysis-economic-growth
[2] Service Sector Contribution to India's GDP https://www.ibef.org/research/case-study/service-sector-contribution-to-india-s-gdp
[3] India's IT Sector Analysis: A Powerhouse Driving Economic ... https://www.angelone.in/news/share-market/india-it-sector-analysis-economic-growth
[4] India - Information and Communication Technology https://www.trade.gov/country-commercial-guides/india-information-and-communication-technology
[5] India: IT-BPM industry share in GDP 2025 | Statista https://www.statista.com/statistics/320776/contribution-of-indian-it-industry-to-india-s-gdp/
[6] India - Distribution of gross domestic product (GDP) across economic sectors 2023| Statista https://www.statista.com/statistics/271329/distribution-of-gross-domestic-product-gdp-across-economic-sectors-in-india/
[7] Information technology in India - Wikipedia https://en.wikipedia.org/wiki/Information_technology_in_India
[8] services sector continues to contribute significantly to india's ... https://www.pib.gov.in/PressReleasePage.aspx?PRID=2034920
[9] Indian Information Technology Sector and Its Growth https://www.ibef.org/industry/information-technology-india
[10] The IT Sector contributes 10% to India's GDP https://www.reddit.com/r/IndiaStatistics/comments/1im3y8x/the_it_sector_contributes_10_to_indias_gdp/
[11] Service Sector: The Backbone of Indian Economy https://competitiveness.in/service-sector-the-backbone-of-indian-economy/
[12] economic survey 2024-25 services export growth surged to 12.8 ... - PIB https://www.pib.gov.in/PressReleasePage.aspx?PRID=2097889
Citations:
[1] Service Sector: The Backbone of Indian Economy https://competitiveness.in/service-sector-the-backbone-of-indian-economy/
[2] [PDF] India's Services Sector Overview - CII https://www.cii.in/International_ResearchPDF/CII%20Presentation_Services%20Exports.pdf
[3] India's Services Sector Performance and Contribution to GDP in 2025 https://www.china-briefing.com/china-outbound-news/india-services-sector-growth-trends-2025
[4] How India's services economy became a world leader https://www.goldmansachs.com/insights/articles/how-india-services-economy-became-a-world-leader
[5] India's Export Powerhouse: The Rise of Services - Oreate AI Blog https://www.oreateai.com/blog/indias-export-powerhouse-the-rise-of-services/3a0a8e9a899f4f782737c075c6da0659
[6] economic survey 2024-25 services export growth surged to 12.8 ... - PIB https://www.pib.gov.in/PressReleasePage.aspx?PRID=2097889
[7] Services Industry Exports from India, Sector Overview - IBEF https://www.ibef.org/exports/services-industry-india
[8] [PDF] India's Services Sector: Insights from GVA Trends and State-Level ... https://niti.gov.in/sites/default/files/2025-10/Indias_Services_Sector_Insights_from_GVA_Trends_State_level_Dynamics.pdf
[9] Make in India for the world: Top exports fueling India's growth story https://www.investindia.gov.in/team-india-blogs/make-india-world-top-exports-fueling-indias-growth-story
[10] India Exports By Category https://tradingeconomics.com/india/exports-by-category
[11] India's exports set a new record of $821 bn in FY25 on ... https://www.fortuneindia.com/business-news/indias-exports-set-a-new-record-of-821-bn-in-fy25-on-strong-services-growth-despite-flat-goods-trade/122227
Citations:
[1] International trade in goods - Statistics Explained - Eurostat https://ec.europa.eu/eurostat/statistics-explained/index.php/International_trade_in_goods
[2] Exports of goods and services (% of GDP) https://data.worldbank.org/indicator/NE.EXP.GNFS.ZS
[3] Merchandise: Total trade and share, annual https://unctadstat.unctad.org/datacentre/reportInfo/US.TradeMerchTotal
[4] Tables 1-6: Exports and imports of services by sector https://assets.publishing.service.gov.uk/media/5b169ce8e5274a18fa9d3927/Tables_1-6_Exports_and_imports_of_services_by_sector.xlsx
[5] IMTS - IMF Data - International Monetary Fund https://data.imf.org/en/datasets/IMF.STA:IMTS
[6] International merchandise trade statistics https://data-explorer.oecd.org/vis?df%5Bds%5D=DisseminateFinalDMZ&df%5Bid%5D=DSD_IMTS%40DF_IMTS&df%5Bag%5D=OECD.SDD.TPS
[7] Trade: export value worldwide 1950-2024 https://www.statista.com/statistics/264682/worldwide-export-volume-in-the-trade-since-1950/
[8] India's exports set a new record of $821 bn in FY25 on ... https://www.fortuneindia.com/business-news/indias-exports-set-a-new-record-of-821-bn-in-fy25-on-strong-services-growth-despite-flat-goods-trade/122227
[9] Expecting India's 2025-26 overall exports to touch USD 850 billion: Commerce Secretary https://economictimes.com/news/economy/foreign-trade/expecting-indias-2025-26-overall-exports-to-touch-usd-850-billion-commerce-secretary/articleshow/126550450.cms
[10] India's exports rise 15.5% in November 2025, trade deficit ... https://ddnews.gov.in/en/indias-exports-rise-15-5-in-november-2025-trade-deficit-narrows/
[11] India's Cumulative Exports Reach US$ 634.26 Billion in April ... https://www.policyedge.in/p/indias-cumulative-exports-reach-us
[12] The cumulative value of merchandise exports during April- ... https://www.pib.gov.in/PressReleasePage.aspx?PRID=2214961®=3&lang=1
[13] [PDF] Update on India's Merchandise Trade - ICRA Limited https://www.icra.in/Rating/DownloadResearchSpecialCommentReport?id=6734
Citations:
[1] India's exports set a new record of $821 bn in FY25 on ... https://www.fortuneindia.com/business-news/indias-exports-set-a-new-record-of-821-bn-in-fy25-on-strong-services-growth-despite-flat-goods-trade/122227
[2] Expecting India's 2025-26 overall exports to touch USD 850 billion: Commerce Secretary https://economictimes.com/news/economy/foreign-trade/expecting-indias-2025-26-overall-exports-to-touch-usd-850-billion-commerce-secretary/articleshow/126550450.cms
[3] India Balance of Trade - Trading Economics https://tradingeconomics.com/india/balance-of-trade
[4] The cumulative value of merchandise exports during April- ... https://www.pib.gov.in/PressReleasePage.aspx?PRID=2214961®=3&lang=1
[5] India's exports rise 15.5% in November 2025, trade deficit ... https://ddnews.gov.in/en/indias-exports-rise-15-5-in-november-2025-trade-deficit-narrows/
[6] [PDF] Update on India's Merchandise Trade - ICRA Limited https://www.icra.in/Rating/DownloadResearchSpecialCommentReport?id=6734
[7] India Exports Rise 1.87% in December 2025 Amid US Tariffs https://www.linkedin.com/posts/lokesh-bodad-18b07324a_december-2025-export-performance-indias-activity-7417558099156271104-bmWj
[8] India Trade 2025: Sector Impact & Strategic Insights - LinkedIn https://www.linkedin.com/pulse/india-trade-update-exportimport-disruption-sectoral-impact-bansal-lfhuc
[9] Top 10 Indian Export Categories to the U.S. in 2025 https://overseaslogistic.com/2025/12/03/india-exports-usa-2025/
[10] India's International Trade and Investment - Exim Bank https://www.eximbankindia.in/sites/default/files/2025-07/Indias-International-Trade-and-Investment-2024-25_09.06.2025_0.pdf
[11] India's Cumulative Exports Reach US$ 634.26 Billion in April ... https://www.policyedge.in/p/indias-cumulative-exports-reach-us
[12] Total exports jump to $825 bn in FY25 as services ... https://a2ztaxcorp.net/total-exports-jump-to-825-bn-in-fy25-as-services-shipments-rise-over-13/
Citations:
[1] Expecting India's 2025-26 overall exports to touch USD 850 billion: Commerce Secretary https://economictimes.com/news/economy/foreign-trade/expecting-indias-2025-26-overall-exports-to-touch-usd-850-billion-commerce-secretary/articleshow/126550450.cms
[2] India Balance of Trade - Trading Economics https://tradingeconomics.com/india/balance-of-trade
[3] India's counter-tariff strategy begins to show results https://economictimes.com/news/economy/foreign-trade/india-us-trade-trump-tariffs-impact-export-diversification-2025-counter-tariff-strategy-begins-to-show-results/articleshow/124701253.cms
[4] India's Growth Outlook Faces Trade Deal Uncertainty https://www.whalesbook.com/news/English/economy/Indias-Growth-Outlook-Faces-Trade-Deal-Uncertainty/6975a150f17b75eee1bca6fe
[5] India's Major Exports Rely 30% on US, but Some Sectors ... https://www.niftytrader.in/markets/indias-major-exports-rely-30-on-us-but-some-sectors-may-avoid-tariff-impact/
[6] Which Indian sector has been hit hardest by Trump's tariffs ... https://news24online.com/business/which-indian-sector-has-been-hit-hardest-by-trumps-tariffs-see-government-data/724745/
[7] Top Trading Countries with India in 2025 - B2B Export Import Academy https://b2bexportimportacademy.com/blog/top-trading-partners-of-india/
[8] India–China Trade Report 2017–2025: Imports, ... https://gtaic.ai/market-reports/india-china-trade-report-2017-2025
[9] India's trade relationship with China in 2025 https://b2bexportimportacademy.com/blog/indias-trade-relationship-with-china-in-2025/
[10] India-China Relations in 2025: Between Reset and Reality https://atlasinstitute.org/india-china-relations-in-2025-between-reset-and-reality/
[11] US Tariff on India: Impact, Affected Products, Rates and ... https://cleartax.in/s/us-tariff-on-india
[12] 25% penal tariff on India for Russian oil buys to end? ... https://economictimes.com/news/economy/foreign-trade/25-penal-tariff-on-india-for-russian-oil-buys-to-end-us-bessent-says-theres-a-way/articleshow/127376211.cms
[13] Great Powers, Geopolitics, and the Future of Trade https://www.bcg.com/publications/2025/great-powers-geopolitics-global-trade
[14] India's trade with US and China: Performance and potential - EY https://www.ey.com/en_in/insights/tax/economy-watch/india-s-trade-with-us-and-china-performance-and-potential
[15] Will Trump's India Tariffs Affect a Critical U.S. Partnership? https://www.cfr.org/articles/will-trumps-india-tariffs-affect-critical-us-partnership
[16] ET Budget Survey 2026: How India can counter external pressures ... https://economictimes.com/news/economy/foreign-trade/union-budget-2026-trump-tariffs-exports-china-imports-manufacturing-schemes/articleshow/127232708.cms
[17] Exploring India UAE Trade and Economic Relations - IBEF https://www.ibef.org/indian-exports/india-uae-trade
[18] India's Top Trading Partners: Export and Import https://www.connecta-network.com/indias-top-trading-partners-export-and-import/
[19] Why Bangladesh-India Trade Is Surging Despite Strong Anti-India ... https://thediplomat.com/2025/10/why-bangladesh-india-trade-is-surging-despite-strong-anti-india-sentiment/
[20] India's Free Trade Agreements: Updates in 2025 - India Briefing https://www.india-briefing.com/news/indias-free-trade-agreements-updates-2025-36271.html/
[21] India-EU free trade pact: What's agreed, what's at stake after years of ... https://www.reuters.com/sustainability/climate-energy/india-eu-free-trade-pact-whats-agreed-whats-stake-after-years-talks-2026-01-23/
[22] India-EU Trade Deal 2026 Explained: Sectors & Stocks to Watch https://www.finowings.com/Stock/india-eu-trade-deal-stocks
[23] India–EU Trade Deal May Boost Markets: Key Sectors to Watch https://wisecorglobal.com/news/india-eu-trade-deal-market-impact-sectors/
[24] India-EU Trade Deal Nears Finish, Four Sector Winners - Kotak Securities https://www.kotakneo.com/news/market-news/india-eu-trade-deal-sector-winners-investors/
[25] India-EU trade: GSP suspension raises tariffs on 87% ... https://timesofindia.indiatimes.com/business/india-business/india-eu-trade-gsp-suspension-raises-tariffs-on-87-of-exports-heres-what-gtri-report-say/articleshow/127159888.cms
[26] Electronics, pharma, auto and textiles fuel India's manufacturing ascent | DD News https://ddnews.gov.in/en/electronics-pharma-auto-and-textiles-fuel-indias-manufacturing-ascent/
[27] Trump tariffs, falling rupee: What are the biggest risks to India's ... https://timesofindia.indiatimes.com/business/india-business/trump-tariffs-falling-rupee-what-are-the-biggest-risks-to-indias-growth-story-can-the-budget-protect-it/articleshow/127284530.cms
[28] India saw highest-ever trade deficit in October 2025 https://www.icra.in/Research/ViewResearchReport/6627
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