> * You can not compare goods across two countries by simply taking the exchange rate, you need to normalise to account for different factors like disposable income
This is where you are wrong. You have to take exchange rate when calculating PPP. Which is what I have been trying to explain to you. You are completely skipping exchange rate, which is why you are getting an inflated figure of 1.91$ per GB.
You should be calculating it this way:
Exchange rate: 73.17 INR = 1 USD
Now 9 cents is, 0.09 USD = 0.09 * 73.17 = 6.58 INR.
Since PPP is 21.3,
6.58 INR would be 6.58 / 21.3 = 0.3 USD
So 9 cents in India is equal to 30 cents in USA. Now, that is 30 cents per GB and not 1.91$ per GB.
This is where you are wrong. You have to take exchange rate when calculating PPP. Which is what I have been trying to explain to you. You are completely skipping exchange rate, which is why you are getting an inflated figure of 1.91$ per GB.
You should be calculating it this way:
Exchange rate: 73.17 INR = 1 USD Now 9 cents is, 0.09 USD = 0.09 * 73.17 = 6.58 INR.
Since PPP is 21.3, 6.58 INR would be 6.58 / 21.3 = 0.3 USD
So 9 cents in India is equal to 30 cents in USA. Now, that is 30 cents per GB and not 1.91$ per GB.
Remember that PPP is INR/USD and not USD/USD.