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, although perhaps less so than in large European and North American cities.

Mumbai and New Delhi are the most expensive cities in India. Chennai, Bengaluru, Hyderabad, Pune, and Kolkata are more affordable than the two major cities.

If you negotiate a lucrative relocation package in India, you can often afford luxuries that might not be accessible 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, while the rates charged by relocation companies can vary widely.

Renting Expat Accommodation in India
Relocation Companies in India

Cost of transport in India

Getting around in India can be cheap if you use public transport, but you may prefer to opt for a private vehicle instead, as trains and buses can be cramped and uncomfortable. Despite this, public transport remains an affordable option, especially if you use a monthly pass.

Renting or buying a car will cost considerably more. Many employers cover these expenses – be sure to negotiate for a transport allowance in your contract. Employers are increasingly offering transport benefits to expats, particularly in urban areas where commuting can be challenging.

Transport and Driving in India

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. However, the all-inclusive cost of buying groceries will be lower compared to many Western countries.

Supermarket chains offer a wide variety of products at varying prices, although you’ll probably pay more for imported or organic foodstuffs.

Cost of entertainment and eating out in India

The cost of entertainment and eating out in India varies, accommodating a wide range of budgets. Dining out remains affordable, with meals at inexpensive and mid-range restaurants costing less than in Western countries. The popularity of low-cost local cuisine and street food among expats has surged.

Many expats come to love Indian culinary traditions, and street food is a favoured choice due to its affordability and unique flavours. The lively 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 general cost of entertainment in India is lower than in many Western countries, making it an attractive destination if you’re seeking affordable 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, expats usually send their children to 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. 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.

Education and Schools in India

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.

Healthcare in India