Rapid growth since 1980 has transformed India the 50th ranked economy in nominal. US dollars to the 12th largest in the world in 2003. When income is measured with. regard to purchasing power parity, the Indian economy occupies fourth place, after. the United States, Japan, and China. Along with growing incomes, India's. increasingly outward orientation and the growing optimism about its economy has. led to a surge in international investors interest. At the same time evidence. suggests that income inequality is rising and the gap in average per capita income. between the rich and poor states