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“You’ll live like a king over there!” This is what a lot of my family and friends thought before I moved to India from the USA, haha. Now that I’ve lived here for more than 6 months, here’s what I’ve found…
What is the cost of living in India versus the USA? Living in India is 68.3% less expensive than in the USA. Rent prices in India are 85% lower than in the US. Restaurant prices are 75% lower. Grocery prices in India are 64% lower.
India is much less expensive. My fixed expenses (rent, food, phone, utility, and other bills) cost between $557 and $652 a month. On inexpensive months in Austin, Texas, I would spend ~$2500 a month.
In this post, I’ll go through the major spending categories and compare prices between what I paid living here in a town in South India and living in Austin, Texas. Then I’ll share some average costs from big cities in India versus big cities in the USA.
Rent Price: India versus USA
In India, I pay $171 in rent for a 2-bedroom apartment with kitchen and bathroom. In Austin, Texas I paid $825 in rent for a 1-bedroom apartment with a kitchen and bathroom.
In India, I rent a second-floor apartment with a big porch and a spacious rooftop. I have views of the local mountain with big windows. I use one of the bedrooms as a large office and it has two huge windows overlooking a forest and a rice paddy. My living room is much bigger here as well.
The average rent price in Austin is $1,364. Although I rented a 1-bedroom apartment 2 blocks from the river and a 15-minute walk to downtown and it was $825 a month. The area was kinda “hipster” according to a friend meaning it was still being developed so the prices were reduced.
I did not have a full kitchen, instead, my living room and kitchen were combined. The bedroom was smaller and I had my office in the living room.
Quick Note about how I Handle Sending and Receiving Money from India:
One way I handle transferring money internationally is by using Wise, formerly Transferwise since they have the lowest fees that I’m aware of and it’s super easy to do with just my email address. I’ve had friends reimburse me in just a minute and saved thousands with recurring payments from US clients.
If you are looking to send money abroad, it’s a great tool — much cheaper than using your local bank. You can also get your own local bank account details in Europe, UK, US, Australia and New Zealand with the Wise Borderless account.
Also, Indians can now transfer money in rupees to 40+ countries.
To learn more, check out the details here.
Restaurant Costs: India versus USA
Simple Local Restaurant for dinner: I ate at a local Mexican restaurant near my apartment in Austin almost every day and the price for chicken fajitas with beans and vegetables was $13 with ice water.
In India, I eat the local South Indian staple, a Masala Dosa [curried potatoes in a savory pancake]. I add 3 eggs + parotta (similar to a tortilla but thicker and flakey) + 2 coffees/chais for a grand total of 170 INR ($2.43)
I paid 7.65 times more for a local dinner at a simple restaurant in the USA than in India.
Nice Local Restaurant for breakfast: In a nice local Indian restaurant that caters to Western tourists, I have an omelet with cheese and vegetables and toast + an Americano for a grand total of 262 INR ($3.75).
In Austin, there was this nice Mexican place just a few blocks from my house and was very popular. I would have 2 eggs, 2 strips of bacon and refried beans for a grand total of $7.25. Plus coffee and a tip and it’d be ~$11.
I paid 2.93 times more for a nice breakfast at a restaurant in Austin versus a nice restaurant in India.
Exception: At the nice Western-style restaurant here in India I have spent 500 INR ($7 USD) before and up to almost 700 INR, which is about $10 USD. Sometimes I’ll get a few espressos or ginger beers or smoothies and they will add up.
Coffee Costs: India versus USA
In Austin, I would work online at a coffee shop most days and drink two Americanos. Each one cost $2.55 + tax and tip for a total cost of $8.
In India, chai at a local stand is 10 to 30 INR ($0.14 – $0.43), depending on the size.
A coffee at a local stand is 10 – 15 INR ($0.14 – $0.21). It is usually instant coffee though.
A “filter coffee” at a local restaurant is 20 INR ($0.29).
A good espresso or Americano at a nice restaurant is 120 INR ($1.72) + 10% tip = $1.89 USD
Comparing the Americanos in India versus the USA, you will pay 2.17 times more for one in the USA.
The downside of India though is that in my town is rare to find espresso machines. Most of the coffee is filtered or instant. I was addicted to Americanos when I first came so this was an adjustment. Now I like the coffee here. They use condensed milk and a brown sugar like substance called jaggery. It’s actually really delicious.
Internet Costs: India versus USA
In Austin, I paid $70 a month for high-speed fiber internet from Spectrum. I had unlimited access and would get speeds over 100 Mbps.
In India, I pay $9.53 a month for 2000 GB of data a month (~666 HD Netflix movies). I just checked my internet and I get 75.78 Mbps download, 42.62 Mbps upload, 6 ping ms right now.
My internet in Austin was more reliable than my internet in India. Here I’ve been having Google Docs come in and out a few times a day. When I try to stream Vimeo videos, the quality can lag and I have to watch for the little bar at the bottom to catch up for a few minutes sometimes. Other times I’ll be watching Youtube and working on Google Docs, and I’ll need to stop watching Youtube.
Overall, I have been able to work over 40 hours a week at a US company here in India though, so things are going well and the difficulties have not been too troublesome.
The cost of internet in Austin versus internet in India is 7.34 times more.
Mobile Phone Service Costs: India versus USA
In Austin, I had a family mobile phone plan with AT&T and paid $21 a month for unlimited service. I had an iPhone and it was great.
In India, I just renewed my plan with Vodafone and I paid 569 INR ($8.16 USD) for 84 days of service with 3 GB of data a day + unlimited calling and texting. This works out to being ~$2.80 a month.
The data on the India plan is enough. The only time I ever use 3 GB of data is if I scroll through Instagram stories for like 4 hours, haha. I can work over 8 hours on 3 GB a day and it will give me all the data I need.
The downside of the India plan is that I get these annoying texts offering Vodafone’s service most days and was getting auto-calls daily for a month or two.
The cost of a mobile phone service in Austin versus India is 7.5 times more.
Other Common Costs & Prices in India
- Utilities – Electricity Bill: I paid 2300 INR ($32 USD) for 2 months during the spring time. This works out to be $16 a month. During summer the price jumped to 16000 INR for 2 months. This works out to be $116.50 a month.
- Rent a 125-cc scooter for a year: I pay $52 USD a month.
- Custom-made wood bed frame: I paid 6000 INR ($85 USD). This isn’t like super high-end work, more like the least expensive frame I could find without a headboard.
- Classic books: You can find really inexpensive popular classic novels on Amazon. The Great Gatsby was 44 INR ($0.63). War and Peace was 299 INR ($4.28). The Count of Monte Cristo was 199 INR ($2.85).
- Some books are expensive: There is less of a selection of books so there is a chance you won’t find a book or it will have to be imported, which significantly increases the price.
- Handmade furniture: I had a local man make me a cane chair (that I’m actually working in right now) and it was 3500 INR ($50 USD) + 10% tip.
- Tailor-made clothes: A friend had shirts made for her for $5 to $7 a shirt.
- Alcohol: It’s expensive, I had a gin and tonic at the airport and paid like $15 USD. It was like $5 for the tonic alone, haha.
- Domestic beer: 120 INR
- Imported beer: 200 INR
- Coke: 30 INR
- McDonald’s Value Meal: 250 INR
- Cigarettes: 260 INR
- 4-hour taxi to the airport: 3000 INR
- Monthly Gym Membership: 1364 INR
- Movie Tickets: 250 INR
- Levi’s Jeans for Men: 1282 – 2169 INR
Things That Are More Expensive In India?
While many things are much cheaper there are some products that are more expensive here.
Furniture: I was looking to furnish my place and I’m used to going on Craigslist and having a huge selection. There is a similar site where I live called OLX, but the selection is tiny. I found one couch. There are 1644 results when you search “couch” in Austin.
There is a much bigger selection on Amazon in the USA too. When I was looking for a bed and frame, I wanted as inexpensive I could get that’s just not something I value much. Yet there are just fewer options for inexpensive items.
MacBooks: If my computer dies, then I’m going to have to pay more here. The first official Apple Stores will only start to arrive in India in 2019. The Mac products must be imported to India with duties and shipping expenses.
I looked at Amazon in the US and Amazon in India to compare the same MacBook 2018 [Apple MacBook Air (13-inch Retina display, 1.6GHz dual-core Intel Core i5, 256GB) – Space Gray (Latest Model) and here’s what I found:
- India – 1,25,990 INR ($1804 USD)
- USA – $1249 USD
If we can extrapolate this data, then it’s 1.44 times more expensive to buy a MacBook Air in India versus the USA.
What About The Cost of Living in India’s Major Cities?
All of the above data compares the town that I’m living in in South India with Austin, Texas which is a relatively affordable US city.
Let’s look at the cost of living across the big cities of India for comparison [Source: Numbeo]:
Mumbai
One of the world’s most populated cities that is bordered by the sea on three sides is also one of India’s most expensive to live in. According to the Mercer Cost of Living Survey, Mumbai is the 57th most expensive city in the world.
- The average cost of rent in Mumbai is 21,168 INR ($303 USD).
- The average cost of rent for a 1 bedroom in the city is 36,880 INR ($528 USD)
- The average cost of a meal for 2 in an inexpensive restaurant: 240 INR ($3.44 USD).
- The average cost of a taxi per km is 20 INR ($0.29 USD).
Delhi
The capital of India has more parks and inexpensive street food. It also more space for housing and other fun stuff. It is the 99th most expensive city in the world according to Mercer.
- Housing in Delhi could cost between 17,000 and 32,083 INR ($243 – $459 USD)
- The average cost of rent for a 1 bedroom in the city is 16,043 INR ($230 USD)
- The average cost of a meal for 2 in an inexpensive restaurant is 250 INR ($3.58 USD)
- The average cost of a taxi per km is 11 INR ($0.16 USD)
Chennai
This is India’s fifth largest city and the third most expensive, according to the Mercer study. There have been government policies that have made rent go up, however this is one of the most popular destinations for expats and travelers.
- The average rent in Chennai is estimated to range between 12,000 and 29,000 INR ($172 – $415 USD)
- The average cost of rent for a 1 bedroom in the city is 11,822 INR ($169.34 USD)
- The average cost of a meal for 2 in an inexpensive restaurant is 120 INR ($1.72 USD)
- The average cost of a taxi per km is 12 INR ($0.17 USD)
Bengaluru
This city is not far from Chennai and commonly referred to as the Silicon Valley of India. With the growing population of ambitious young people, there is are troubles like traffic and pollution. This city is the ranked 166th most expensive, according to the Mercer study.
- The average rent is 12,000 to 26,000 INR ($172 – $372 USD)
- The average cost of rent for a 1 bedroom in the city is 14735 INR ($211 USD)
- The average cost of a meal for 2 in an inexpensive restaurant is 150 INR ($2.15 USD)
- The average cost of a taxi per km is 12 INR ($0.17 USD)
Kolkata
Of India’s major cities, Kolkata is the easiest on your budget. It is one of the most populated but it also has a great transportation system and the oldest metro rail service.
- Lunch with drinks in Kolkata costs around 324 INR ($4.64 USD)
- The average cost of rent for a 1 bedroom in the city is 13038 INR ($187 USD)
- The average cost of a meal for 2 in an inexpensive restaurant is 200 INR ($2.86 USD)
- The average cost of a taxi per km is 12.75 INR ($0.18 USD)
Pune
Pune is one of the cities in India with a booming local economy and a higher cost of living. The city continues to grow and has a higher quality of life than the major metropolises in India like Delhi and Mumbai.
- The average cost of rent for a 1 bedroom in the city is 13231 INR ($190 USD)
- The average cost of a meal for 2 in an inexpensive restaurant is 200 INR ($2.86 USD)
- The average cost of a taxi per km is 12 INR ($0.17 USD)
Hyderabad
This is one of the most inexpensive cities to live in India, yet also one of the best in respect to quality of living, according to the Mercer study. There are more and more IT jobs with all the fast WiFi and other serves that come along with that.
- The average cost of rent for a 1 bedroom in the city is 9731 INR ($139 USD)
- The average cost of a meal for 2 in an inexpensive restaurant is 120 INR ($1.72 USD)
- The average cost of a taxi per km is 10 INR ($0.14 USD)
Ahmedabad
This big city in Gujarat ranks better than other cities in cost of living. The utilities and internet is reasonably priced and so is the transportation. There are also great nearby cities and town with an even lower cost of living, if you want to get out of a big city.
- The average cost of rent ranges between 10000 and 26000 INR ($143 – $372 USD)
- The average cost of a meal for 2 in an inexpensive restaurant is 163 INR ($2.33 USD)
- The average cost of a taxi per km is 10 INR ($0.14 USD)
Goa
Goa cost of living ranks 411st out of 437 cities in the world, so it is extremely reasonable to live there. This must be one reason why it draws such a big crowd of hippies and rave music seekers… that and the beautiful beaches.
- The average cost of rent for a 1 bedroom in the city is $157 USD
- The average cost of rent for a 1 bedroom outside the city center is $111 USD
- The average cost of rent for a 3 bedroom apartment in the city is $365 USD
- The average cost of internet with 60 Mbps or more is $8.88 a month
- The average cost of a meal for 2 in an inexpensive restaurant is $3.55 USD
Another Study Found 3 Indian Cities are the Cheapest To Live In…
Bengaluru, Chennai, and New Delhi are ranked among the world’s ten cheapest cities to live in. The Economist Intelligence Unit released a bi-annual survey in March of 2019 and ranked 133 cities in 93 countries surveying 50,000 people.
These Indian cities rank alongside other inexpensive cities like Buenos Aires and Lagos in Nigeria.
Bengaluru is actually Asia’s most affordable city and is twice as inexpensive as the three most expensive cities which are Paris, Zurich and Geneva.
