Measuring development levels is a challenge.
Traditionally development has measured using economic data such as GDP or GNI per capita.
These measures fail to recognise:
The local value of money
The non-money economy e.g. barter and exchange
It is also important to recognise that development has social and quality of life aspects
Measures such as life expectancy, education level, access to sanitation are important
*data for Dec 2009
This basket of goods costs 112 Indian Rupees in India, the equivalent of £1.50*. To buy the same basket of goods in the UK would cost around £6.
The difference in how much goods and services really cost, is why PPP (purchasing power parity) GDP income is used rather than ‘raw’ GDP.
Using raw GDP per capita average income in India is about $1000, but PPP GDP per capita income is $2800