Consider the following statements : 1. Purchasing Power Parity (PPP) exchange rates are calculated by comparing the prices of the same basket of goods and services in different countries. 2. In terms of PPP dollars, India is the sixth largest economy in the world. Which of the statements given above is/are correct?

1. Statement 1 is correct. Purchasing Power Parity (PPP) exchange rates are indeed calculated by comparing the prices of a common basket of goods and services across different countries. The rate attempts to equalize the purchasing power of the currencies. 2. Statement 2 is incorrect. In terms of PPP dollars, India was generally ranked as the third largest economy in the world around 2019 (after China and the US), not the sixth largest. 3. Therefore, only statement 1 is correct.