Given its large size, India's cost of living varies considerably. You may be surprised to find that the cost of living in India's major cities can be pricey, though perhaps less so than in large European and North American cities.
The 2024 Mercer Cost of Living Survey ranked Mumbai and New Delhi as 136th and 165th respectively out of the 226 cities studied. The costs of living in Chennai, Bengaluru, Hyderabad, Pune, and Kolkata are lower at 189th, 195th, 202nd, 205th and 207th respectively.
If you negotiate a lucrative relocation package in India, you can often afford luxuries that might not be affordable at home, such as domestic services, chauffeurs, and having home-cooked lunches delivered to your office.
Cost of accommodation in India
Accommodation is likely to be your biggest expense in India, with property in New Delhi and Mumbai being particularly expensive. Try to negotiate a housing allowance or complimentary housing into your employment package wherever possible.
Rental prices in New Delhi and Mumbai have been increasing, but the overall trend indicates a moderation in rental growth due to increased housing supply. The demand for housing allowances among expats has risen significantly as rental prices increase. More companies now offer housing benefits to attract skilled international talent, particularly in high-demand markets like New Delhi and Mumbai.
Without assistance from your employer, you will likely need to factor in the costs of hiring a real estate agent or relocation company to assist with the home search and lease negotiations. Real estate agent fees typically range from one to two months' rent.
Cost of transport in India
Getting around in India can be cheap if you use public transport, but you may prefer to opt for private transport. Public transport remains affordable, especially if you use a monthly pass.
Renting or buying a car will cost considerably more. Some employers cover these expenses, recognising the importance of easing travel burdens for their staff. Employers are increasingly offering transport benefits to employees, particularly in urban areas where commuting can be challenging. These benefits often include shuttle services or transport allowances.
Cost of groceries
If you buy local produce, you'll find that everyday groceries are cheap in India. Shopping at vegetable markets allows you to eat fresh seasonal produce while supporting local vendors. The prices of everyday groceries in Indian vegetable markets have increased moderately in recent years, with vegetables rising by up to 10 percent due to inflation and supply chain disruptions. However, the overall cost of living remains lower compared to many Western countries.
Cost of entertainment and eating out in India
The cost of entertainment and dining out in India has been evolving. Dining out remains affordable, with meals at inexpensive restaurants and mid-range restaurants costing less than in Western countries. The popularity of local cuisine and street food among expats has surged.
Many expats are embracing Indian culinary traditions, with street food becoming a favoured choice due to its affordability and unique flavours. The vibrant street food scene in cities like Mumbai and Delhi offers a variety of options, from pani puri to vada pav, attracting both locals and expats.
Entertainment costs for expats in India show a mixed trend. Traditional options like cinemas and dining out remain affordable, but activities such as fitness clubs and international events have seen a noticeable increase. Despite these increases, the overall cost of entertainment in India is lower than in many Western countries, making it an attractive destination for expats seeking leisure activities.
Cost of education in India
Your children can attend public schools in India, but their standards may not align with what you expect. Instead, expat children will usually attend international schools. That said, public school standards in India are improving, driven by the New Education Policy implemented in 2023. This policy aims to enhance educational quality and accessibility, making public schools more appealing to expat parents. Developments include updated curricula, better teacher training and increased focus on holistic education.
Fees vary between private schools, but they are generally high. Securing a place at popular international schools in India is difficult, and calling upon contacts or even paying bribes to secure a place isn't unheard of. The latter is not advised. Instead, try to negotiate a schooling allowance into your employment contract. In recent years, the admission processes for international schools have become more streamlined, with many schools adopting online applications and virtual interviews.
Cost of healthcare in India
Moving to India will give you access to relatively cheap healthcare services with good standards. You will, however, have to factor in the cost of health insurance if your employer does not cover it. Medical insurance packages have become more comprehensive, with many providers offering tailored plans that include coverage for pre-existing conditions and maternity benefits.
Cost of living in India chart
Prices may vary depending on the product and service provider. The list below shows average prices for Mumbai in August 2024.
Accommodation (monthly rent) | |
Three-bedroom apartment in the city centre | INR 152,000 |
Three-bedroom apartment outside the city centre | INR 80,500 |
One-bedroom apartment in the city centre | INR 51,500 |
One-bedroom apartment outside the city centre | INR 30,500 |
Food and drink | |
Dozen eggs | INR 115 |
Milk (1 litre) | INR 75 |
Rice (1kg) | INR 75 |
Loaf of white bread | INR 50 |
Chicken breasts (1kg) | INR 240 |
Pack of cigarettes (Marlboro) | INR 530 |
Eating out | |
Three-course meal for two at a mid-range restaurant | INR 1,540 |
Big Mac Meal | INR 625 |
Coca-Cola (330ml) | INR 45 |
Cappuccino | INR 245 |
Bottle of beer (local) | INR 225 |
Utilities/household | |
Mobile phone monthly plan (with calls and data) | INR 360 |
Internet (uncapped ADSL or cable – average per month) | INR 1,050 |
Basic utilities (average per month for a standard household) | INR 9,500 |
Transportation | |
Taxi rate/km | INR 30 |
City-centre public transport fare | INR 20.30 |
Gasoline/Petrol (per litre) | INR 110 |
What's the cost of living like in India?
"The services of anyone from nanny to cook to maid to driver isn't expensive. Doing dishes or wiping counters will become a thing of the past."
For an extensive list of products and services that are cheap or expensive in India, read our expat interview with Pruma, an Indian national who repatriated to India.
"Your salary goes a LOT further in India. Food and consumer items (including designer goods) are a fraction of the cost in the UK."
Read more in our interview with British expat Striddle who moved to Bengaluru.
Further reading
►For more on managing your finances, see Banking, Money and Taxes in India
Are you an expat living in India?
Expat Arrivals is looking for locals to contribute to this guide, and answer forum questions from others planning their move to India. Please contact us if you'd like to contribute.
Expat Health Insurance
Cigna Global Health Insurance
Moving your family abroad can be intimidating, but learning about medical options such as family health insurance early on can help you successfully settle in.
- Comprehensive family coverage, wherever you go
- Paediatric coverage for well-child visits & immunisations
- Access to dental and orthodontic care
- 24/7 multilingual customer service
Moving Internationally?
International Movers. Get Quotes. Compare Prices.
Sirelo has a network of more than 500 international removal companies that can move your furniture and possessions to your new home. By filling in a form, you’ll get up to 5 quotes from recommended movers. This service is free of charge and will help you select an international moving company that suits your needs and budget.
Get your free no-obligation quotes from select removal companies now!