As an emerging and developing economy, India continues to offer a significantly lower cost of living compared with the UK, U.S., and Australia. Updated cost-of-living data for 2025–2026 shows that India remains one of the world’s most affordable destinations for expatriates. For example, the average monthly cost for a family of four is approximately USD 1,095 (₹98,910), while a single person spends around USD 305 (₹27,574), excluding rent.¹ These figures reflect that living expenses in India are over 70% lower than in the United States on average.¹

Recent global cost-of-living rankings also echo this affordability: in Mercer’s 2024 Cost of Living Survey, Mumbai—India’s most expensive city—ranked 136th globally, while Delhi ranked 164th, Chennai 189th, and Bangalore 195th.² This positions Indian cities far below the most expensive Western cities such as London or New York, where international living costs are significantly higher.

Daily Costs and Lifestyle Considerations

India’s affordability extends across food, entertainment, accommodation, transportation, and services, particularly when compared with Europe or North America. Local goods and services—including restaurant meals, public transport, and domestic help—remain inexpensive. However, imported goods (such as specialty foods, electronics, and international brands) often carry significantly higher prices due to duties and logistics, meaning expats maintaining a fully Western lifestyle should anticipate higher spending.

Hiring household staff—such as a cook, driver, or cleaner—remains common among expatriates and is generally far more affordable than in Western countries because of India’s comparatively low labor costs.

Education Costs for Expatriate Families

International and private schooling for expat families is also relatively less expensive in India compared to British or American private schools. Fees vary widely but are generally lower than Western equivalents. For example, top-tier international schools frequently charge between ₹7–17 lakh per year depending on curriculum, city, and boarding requirements.³ While this is a meaningful expense, it is still modest compared with international school fees in London, New York, or Sydney.

Quality of Life and Affordability

With careful budgeting—and depending on lifestyle choices—expat professionals can expect to enjoy a comfortable or even privileged standard of living in India. Many expatriates take advantage of India’s high-value services, including domestic assistance, diverse cuisines, rich cultural offerings, and travel opportunities.

Saving Money & Navigating Local Market Culture

Haggling remains a central part of commercial life throughout India. For expatriates, understanding the cultural etiquette of bargaining can significantly reduce costs and enhance daily interactions.

Key Guidelines for Effective (and Respectful) Haggling

• Start with research: Know the market price for the item before beginning negotiations.
• Aim for significant reductions: Initial bids may target 30–70% off the starting price, though outcomes vary.
• Expect a storytelling element: Vendors may reference personal circumstances; this is part of the cultural negotiation rhythm.
• Negotiate item-by-item when purchasing multiple goods, then request a multi-item discount.
• Wait for at least two price reductions before speaking, silence is a powerful tool in India’s market culture.
• Avoid direct eye contact during intense negotiation moments, as it may be considered rude.
• A gentle tug on one’s earlobe can show sincerity, as ears are culturally symbolic.

As in any global context, expatriates should remain cautious of scams or overly aggressive vendors. Speaking with other expats, colleagues, and neighbors can help identify common pitfalls. When mistakes happen, it’s best to move on rather than let them affect the richness of the broader Indian experience.

1. Numbeo. Cost of Living in India (January 2026). https://www.numbeo.com/cost-of-living/country_result.jsp?country=India. Accessed January 15, 2026.
2. Nandini Singh. “This city in India has been ranked the most expensive for expats in 2024.” Business Standard. June 18, 2024. https://www.business-standard.com/india-news/this-city-in-india-has-been-ranked-the-most-expensive-for-expats-in-2024-124061800404_1.html. Accessed January 15, 2026.
3. Top 10 Boarding Schools in India (2025 Updated Guide). BoardingSchoolIndia.com. August 30, 2025. https://www.boardingschoolindia.com/top-10-boarding-schools-in-india-2025-updated-guide/. Accessed January 15, 2026.