Cost of Living in India

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.