According to a report by Mercer, Mumbai is the most expensive city in India for expatriates. It is ranked 21st in Asia and 136th globally, while Delhi is 30th in Asia and 164th globally.
The Indian economy has been strong compared to many other major economies. It has grown significantly due to strong domestic demand and a booming services sector.
Mercer’s survey, which ranked 226 cities based on the cost of over 200 items like transportation, food, clothing, and entertainment, placed Hong Kong as the most expensive city globally. Singapore is second, followed by Zurich in third place.
Rahul Sharma, India Mobility Leader at Mercer, stated that despite global economic challenges, India’s resilience is evident in the 2024 Cost of Living Survey. Mumbai’s rise in the rankings does not overshadow the overall affordability of Indian cities, which remains an advantage for attracting global talent.
Other Indian cities have also seen changes in their rankings. New Delhi moved up four spots to 164, Chennai dropped five positions to 189, Bengaluru fell six spots to 195, while Hyderabad remained stable at 202. Pune climbed eight places to 205, and Kolkata rose four spots to 207.
Mumbai and Delhi have moved up in Asia, with Mumbai now at 21st and Delhi at 30th among surveyed locations. Factors such as employment growth, a rising middle class, and overall economic growth have impacted the cost of living in India.
The US dollar’s strength against most currencies has pushed up US cities in the ranking. Despite low price increases across Europe, several local currencies weakened against the dollar, pushing European cities down. The Indian rupee remained stable against the dollar, preventing significant dips in the ranking for Indian cities.
Costing overview of Indian Major Cities:
Personal Care: Mumbai is the most expensive for cosmetics, toiletries, and beauty products, followed by Chennai. Kolkata is the least expensive.
Energy and Utilities: Mumbai and Pune are the most expensive.
Food and Beverages: Kolkata offers the most economical prices for milk, dairy products, bread, beverages, oils, fruits, and vegetables, followed by Pune.
Transportation: Costs are highest in Mumbai, followed by Bangalore.
Alcohol and Tobacco: Delhi has the lowest prices, while Chennai has seen a 20% increase in the past year.
Housing Rentals: Rentals in expatriate neighbourhoods have increased by 3-6% in Bengaluru, 2-4% in Pune, Hyderabad, and Chennai. Delhi has seen the highest increase at 12-15%, while Mumbai saw a 6-8% rise. Kolkata had the slowest rise of less than 2%.
