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?

Statement 1 is correct as Purchasing Power Parity (PPP) is a measurement of prices in different countries that uses the prices of a standardized basket of goods to compare the absolute purchasing power of different currencies. Statement 2 is incorrect because, while India is the fifth-largest economy by nominal GDP, it is the third-largest economy globally in terms of PPP, following China and the USA. This question tests the core concept of international economic measurement metrics and India's relative global economic standing.