A few months after we moved back from California, my wife and I sat down one evening to compare what we used to spend in the US versus what we were spending in Bangalore.
The numbers surprised us. Not just the obvious savings on rent and groceries. But the massive difference in things like childcare, domestic help, healthcare and eating out.
That comparison became one of the most-asked topics in our WhatsApp community. NRIs planning their return always want to know: “Will my savings last?” and “How much do I actually need in India?”
So here’s a detailed, real-world breakdown. Not just from Google, but from my own experience and what thousands of community members have shared over the years.
The Big Picture – How Much Cheaper is India?
Let’s start with the headline number.
According to Numbeo (updated February 2026), the overall cost of living in the USA is roughly 270% higher than India – excluding rent. When you include rent, that gap jumps to over 350%.
Here’s a quick snapshot:
| Category | How Much More Expensive is the USA? |
|---|---|
| Overall (excluding rent) | ~270% higher |
| Overall (including rent) | ~356% higher |
| Rent alone | ~838% higher |
| Restaurants | ~372% higher |
| Groceries | ~247% higher |
These are averages. Your actual experience depends on which US city you’re coming from and which Indian city you’re moving to.
Someone moving from San Francisco to Hyderabad will feel a much bigger difference than someone going from a small US town to Mumbai.
If you’re weighing this decision, our return to India from USA guide covers the full picture beyond just costs.
Housing and Rent – The Biggest Difference
Housing is where you’ll feel the sharpest contrast.
In the US, a 1-bedroom apartment in a city center costs roughly $1,650-$1,700/month on average. In India, the same apartment runs about ₹14,000-₹15,000/month ($165-$170).
For families needing a 3-bedroom apartment, here’s how it looks:
| Apartment Type | India (Monthly) | USA (Monthly) |
|---|---|---|
| 1 BHK – City Center | ₹14,000 (~$155) | $1,670 (~₹1,50,000) |
| 1 BHK – Suburbs | ₹9,100 (~$100) | $1,350 (~₹1,22,000) |
| 3 BHK – City Center | ₹32,600 (~$360) | $2,685 (~₹2,43,000) |
| 3 BHK – Suburbs | ₹20,700 (~$230) | $2,225 (~₹2,01,000) |
Source: Numbeo, February 2026. Approximate exchange rate: ₹90 = $1
Now, these are national averages. In cities like Bangalore, Hyderabad, and Pune – which are popular with returning NRIs – you can get a well-furnished 3BHK in a good gated community for ₹35,000-₹55,000/month.
That same quality apartment in the Bay Area or New York would easily be $3,500-$5,500/month.
Many NRIs in our community have shared that housing alone frees up 60-70% of what they used to pay in the US.
If you’re deciding between buying vs renting a house in India, that’s another important decision worth exploring early.
Groceries and Daily Essentials
Your grocery bill will drop significantly. But not everything is cheaper.
Some India vs USA grocery prices (approximate):
| Item | India | USA | Difference |
|---|---|---|---|
| Milk (1 liter) | ₹61 ($0.67) | ₹96 ($1.06) | ~58% more in USA |
| Rice (1 lb) | ₹28 ($0.31) | ₹189 ($2.08) | ~580% more in USA |
| Eggs (12) | ₹84 ($0.92) | ₹400 ($4.41) | ~377% more in USA |
| Chicken (1 lb) | ₹121 ($1.33) | ₹505 ($5.56) | ~317% more in USA |
| Tomatoes (1 lb) | ₹21 ($0.23) | ₹201 ($2.21) | ~845% more in USA |
| Potatoes (1 lb) | ₹15 ($0.17) | ₹119 ($1.31) | ~670% more in USA |
| Onions (1 lb) | ₹17 ($0.19) | ₹126 ($1.39) | ~628% more in USA |
Source: Numbeo, February 2026
Here’s what our community members often say: fresh vegetables, fruits, and staples like dal, rice and spices are dramatically cheaper in India.
Where India catches up a bit is imported or branded products. Cheese, olive oil, certain breakfast cereals, and imported chocolate cost more in India than you’d expect.
My tip: embrace local eating habits. Fresh sabzi from the local market, seasonal fruits, and Indian staples will keep your grocery bill under ₹12,000-₹18,000/month for a family of four. In the US, the same family would spend $800-$1,200.
Eating Out and Restaurants
This is one of those areas where the difference feels almost unreal.
| Meal Type | India | USA |
|---|---|---|
| Basic meal at a local restaurant | ₹200 ($2.20) | ₹1,815 ($20) |
| Meal for two at a mid-range restaurant | ₹1,175 ($13) | ₹6,896 ($76) |
| McDonald’s combo meal | ₹350 ($3.86) | ₹1,089 ($12) |
| Cappuccino | ₹162 ($1.78) | ₹485 ($5.35) |
Source: Numbeo, February 2026
In most Indian cities, a really good meal at a decent restaurant for a family of four costs ₹2,000-₹3,500. In the US, the same dinner would easily be $80-$150 after tips and tax.
Our community members who’ve moved to cities like Bangalore and Hyderabad love the food scene. Great variety, amazing quality, and a fraction of US prices.
One thing to note – food delivery is incredibly affordable in India through apps like Swiggy and Zomato. Many families order in 2-3 times a week and still spend less than cooking at home in the US.
Understanding daily life differences between India and the US goes beyond just prices – it’s about lifestyle shifts too.
Utilities and Internet
Utilities are significantly cheaper in India, but the biggest surprise for most NRIs is mobile and internet costs.
| Utility | India (Monthly) | USA (Monthly) |
|---|---|---|
| Basic utilities (electricity, water, gas) for ~900 sq ft apartment | ₹3,560 ($39) | ₹19,260 ($212) |
| Mobile plan with 10GB+ data | ₹340 ($3.75) | ₹5,576 ($61) |
| Broadband internet (60 Mbps+) | ₹678 ($7.50) | ₹6,611 ($73) |
Source: Numbeo, February 2026
Read that mobile plan number again. In India, you can get unlimited calls and 2GB/day data for ₹299-₹499/month with Jio or Airtel. In the US, a comparable plan costs $50-$75.
Broadband internet in India – 100 Mbps or higher – costs about ₹500-₹800/month. In the US, you’d pay $60-$90 for similar speeds.
One caveat: electricity costs vary a lot in India depending on your state and consumption. If you’re running 3-4 ACs through a hot Indian summer, your bill can climb to ₹8,000-₹15,000.
But even at the higher end, it’s still a fraction of US utility bills.
Transportation – A Mixed Bag
This one’s interesting. Some transport costs are cheaper in India, some aren’t.
| Transport | India | USA |
|---|---|---|
| One-way public transport ticket | ₹26 ($0.29) | ₹227 ($2.50) |
| Monthly public transport pass | ₹800 ($8.82) | ₹5,897 ($65) |
| Gasoline (1 liter) | ₹102 ($1.13) | ₹80 ($0.89) |
| New compact car (VW Golf equivalent) | ₹12,00,000 ($13,200) | ₹32,39,000 ($35,700) |
Source: Numbeo, February 2026
Fuel is one of the few things that’s actually cheaper in the US. Indian petrol prices include heavy taxes.
But here’s the real picture: most returning NRIs don’t drive as much in India. Auto-rickshaws, Ola/Uber rides, and metro systems in cities like Bangalore, Hyderabad, Delhi, and Chennai make car ownership less essential.
An Uber ride that costs $15-$20 in the US costs ₹150-₹250 in India. That’s a 10x difference.
If you’re thinking about car ownership in India, it’s worth understanding how the overall transport ecosystem works differently here.
Healthcare – Where India Really Shines
Healthcare is one of the strongest financial arguments for returning to India. The cost difference is staggering.
Here’s a rough comparison:
| Healthcare Item | India | USA |
|---|---|---|
| Doctor consultation | ₹500-₹1,500 ($6-$17) | ₹11,000-₹27,000 ($125-$300) |
| One night hospital stay | ~₹7,000 ($80) | ~₹2,56,000 ($3,000) |
| Health insurance (family of 4, annual) | ₹25,000-₹60,000 ($280-$670) | ₹15,00,000-₹22,00,000 ($17,000-$25,000) |
| Dental cleaning | ₹500-₹2,000 ($6-$22) | ₹9,000-₹27,000 ($100-$300) |
| Heart bypass surgery | ₹1,50,000-₹4,00,000 ($1,700-$4,400) | ₹45,00,000-₹1,35,00,000 ($50,000-$150,000) |
The quality of care at India’s top hospitals – Apollo, Fortis, Narayana Health, Manipal – is world-class. Many of these hospitals are accredited internationally and attract medical tourism patients from the US and Europe.
One community member shared: “I was paying $1,400/month for family health insurance in the US with a $6,000 deductible. In India, I pay ₹45,000/year for a ₹15 lakh cover with almost zero out-of-pocket.”
That alone is a saving of over $15,000/year.
For choosing the right plan, check out our guide on the best medical insurance in India for returning NRIs.
Education and Childcare – The NRI Parent’s Relief
If you have young children, this is where you’ll feel the most immediate financial relief.
Here’s the comparison:
| Education Type | India (Annual) | USA (Annual) |
|---|---|---|
| Private preschool/kindergarten (monthly) | ₹5,600 ($62)/month | ₹1,33,120 ($1,467)/month |
| Good CBSE/ICSE school | ₹50,000-₹2,00,000 ($550-$2,200) | N/A |
| International school (IB/IGCSE) | ₹3,00,000-₹12,00,000 ($3,300-$13,300) | $15,000-$45,000 |
| Premium international school | ₹8,00,000-₹16,00,000 ($8,900-$17,800) | $25,000-$50,000+ |
Sources: Numbeo, Tutopiya School Fee Guide 2025-26
The childcare/preschool number is probably the most striking. In the US, daycare alone can cost $1,200-$2,500/month per child. In India, even a premium preschool costs ₹5,000-₹15,000/month.
Many NRI families who return choose good CBSE or ICSE schools – which offer excellent education for ₹50,000-₹2,00,000/year. That’s less than one month of American daycare.
If your child is coming from an international school system, you’ll want to look at CBSE vs ICSE or even CBSE vs IB to pick the right curriculum.
For those looking at Bangalore specifically, here’s our list of the best international schools in Bangalore.
Domestic Help – The “India Advantage” NRIs Love
This is one thing that has no real equivalent in the US. And it fundamentally changes your quality of life.
In India, hiring full-time or part-time domestic help is normal and affordable:
| Help Type | India (Monthly) | USA Equivalent |
|---|---|---|
| Full-time maid/cook | ₹12,000-₹25,000 ($135-$280) | $3,000-$5,000 |
| Part-time maid (2 hours/day) | ₹4,000-₹8,000 ($45-$90) | Rarely available |
| Cook (part-time, 1 meal/day) | ₹5,000-₹12,000 ($55-$135) | Rarely available |
| Driver (full-time) | ₹15,000-₹22,000 ($165-$245) | N/A |
| Nanny/childcare helper | ₹10,000-₹20,000 ($110-$225) | $2,500-$4,000 |
Rates vary by city. Metro cities like Mumbai and Delhi are at the higher end.
Almost every returning NRI I’ve spoken to mentions domestic help as a game-changer. The time you save on cooking, cleaning, and errands is something you simply can’t put a price on.
In the US, my wife and I spent our weekends doing chores. In India, we spend that time with our kids and family. That’s a quality-of-life upgrade that no salary comparison can capture.
The Real Monthly Budget – A Family of Four
Let me put it all together with a realistic monthly budget for a family of four, comparing a mid-range lifestyle in both countries.
| Expense Category | India (Bangalore/Hyderabad) | USA (Texas/Atlanta) |
|---|---|---|
| Rent (3BHK, good area) | ₹40,000 ($445) | $2,200 (₹1,98,000) |
| Groceries | ₹15,000 ($167) | $1,000 (₹90,000) |
| Utilities + Internet + Mobile | ₹5,000 ($55) | $350 (₹31,500) |
| Eating out (4x/month) | ₹6,000 ($67) | $600 (₹54,000) |
| Transportation | ₹8,000 ($89) | $800 (₹72,000) |
| Domestic help | ₹15,000 ($167) | $0 (DIY) |
| School fees (2 kids, CBSE/ICSE) | ₹10,000 ($111)/month | $0 (public school) |
| Health insurance | ₹4,000 ($44)/month | $1,200 (₹1,08,000) |
| Entertainment + Misc | ₹10,000 ($111) | $500 (₹45,000) |
| Total | ₹1,13,000 (~$1,255) | $6,650 (~₹5,98,500) |
That’s roughly a 5x difference in monthly expenses for a comparable lifestyle.
Even if you add an international school (₹50,000-₹80,000/month for two kids) and more premium housing, you’d still spend about 3x less than in the US.
This is exactly why financial planning after returning to India is so important. Your savings can stretch much further here – if you plan it right.
What About Salaries? The Purchasing Power Reality
This is the honest part many “India is cheap” articles skip.
Yes, India is significantly cheaper. But salaries are also significantly lower.
The average monthly net salary in India is about ₹41,800 ($461), compared to about $4,250 in the US. That’s roughly a 9x difference.
However, for NRIs returning with savings, remote work income, or senior-level positions at Indian MNCs, the math works very differently.
If you earn ₹30-50 lakh/year in India ($33,000-$55,000), you can live a lifestyle equivalent to someone earning $120,000-$180,000 in the US. That’s because the cost base is so much lower.
Many NRIs in our community work remotely for US companies from India and essentially get the best of both worlds – US-level income with Indian-level expenses.
For those looking at Indian jobs, our industry-wise salary guide for NRIs gives you realistic expectations.
Things That Are More Expensive in India (Yes, They Exist)
It’s not all savings. Here’s what costs more or feels more expensive:
Fuel/Petrol – India’s petrol prices are about 20% higher than the US due to taxes.
Imported goods – Electronics, branded clothing, and imported food items often cost more in India. An iPhone costs roughly the same or slightly more. A pair of Nike shoes can be pricier too.
Premium brands – Zara, H&M, and global brands are about 10-30% more expensive in India.
Cars – A small car like a Maruti Suzuki is affordable, but a mid-range sedan costs relatively more compared to US equivalents when adjusted for income.
International travel – Flights from India to Europe or the US are costlier and longer than domestic US travel.
Quality housing in metro cities – Premium apartments in Mumbai’s Bandra or Bangalore’s Indiranagar can be surprisingly expensive, approaching ₹80,000-₹1,50,000/month.
None of these change the overall picture, but they’re worth knowing so you’re not caught off guard.
Hidden Savings NRIs Don’t Think About
Beyond the obvious line items, there are “invisible” savings in India:
No tipping culture – In the US, tips add 15-25% to every meal, haircut, and service. In India, tipping is optional and minimal.
Family support system – Having grandparents, aunts, and uncles nearby reduces childcare costs and provides emotional support that money can’t buy.
Lower insurance costs – Car insurance, home insurance, and health insurance are all significantly cheaper.
Tax structure – India’s new tax regime can be favorable, especially for those without major deductions. No state income tax in many scenarios versus high state taxes in California or New York.
No property tax shock – Property taxes in India are minimal (₹5,000-₹20,000/year) compared to $5,000-$15,000+ in the US.
Affordable services – From plumbers to electricians to tailors – service costs in India are a fraction of the US. Getting your clothes altered costs ₹100-₹300. In the US? $15-$40.
A Quick Checklist Before You Compare
Before you run your own numbers, consider these factors:
- Which US city are you moving from? (SF/NYC vs. Midwest makes a huge difference)
- Which Indian city are you considering? (Mumbai is 2-3x costlier than Hyderabad for rent)
- Do you have kids? (Education savings are massive in India)
- Will you work remotely or take an Indian salary?
- Do you own a home in India already?
- What lifestyle standard are you targeting?
Our return to India checklist covers the full planning process step by step.
Frequently Asked Questions
How much money do I need to move back to India comfortably?
Based on community feedback, most families feel comfortable with 2-3 years of expenses saved up. That’s roughly ₹30-50 lakh ($33,000-$55,000) if you have a job lined up, or ₹75 lakh-₹1.5 crore ($83,000-$165,000) if you’re still figuring out income. Our guide on how much money to save before moving back goes deeper.
Is Bangalore more expensive than other Indian cities?
Yes, Bangalore and Mumbai have higher rents and dining costs than Hyderabad, Pune, or Chennai. But even Bangalore is roughly 4-5x cheaper than most US metros. If you’re considering different cities, check our best cities in India for NRIs to settle.
What about quality of life? Cheaper doesn’t mean better, right?
Fair point. India has challenges – traffic, pollution, bureaucracy. But it also has things the US doesn’t – affordable domestic help, vibrant community life, proximity to family, and a richness of food and culture that many NRIs deeply miss. The quality of life equation is very personal. Our article on adjusting to life in India after years in the USA covers this honestly.
Will my US savings last longer in India?
Absolutely. If you have $200,000 in savings, that’s roughly ₹1.8 crore. In India, a family of four can live very comfortably on ₹1-1.5 lakh/month. Your savings could last 10-15 years even without additional income. In the US, the same savings might last 2-3 years.
Should I convert all my dollars to rupees?
Not all at once. Keep some in the US for diversification. Many NRIs keep their US bank accounts active and transfer strategically when exchange rates are favorable.
Final Thoughts
The cost of living gap between India and the USA is real and significant. For most NRI families, India offers a comparable or even better lifestyle at 3-5x lower costs.
But this isn’t just about money. It’s about what you gain with those savings – time with family, financial security, the ability to invest, and the freedom to explore what you truly want to do with your life.
When I moved back in 2017, the financial math was one part of the equation. But watching my kids grow up near their grandmother, having the flexibility to start BacktoIndia.com, and being part of a community I care about – those things are priceless.
Your numbers will be different from mine. But I hope this breakdown gives you the clarity to make your own decision with confidence.
If you’re planning your move back, join our WhatsApp community at https://backtoindia.com/groups – 20,000+ NRIs helping each other with real, lived experience. It’s free and volunteer-run.
Data sources: Numbeo (February 2026), Expatistan (January 2026), community surveys, and real-world experience from BacktoIndia.com members. Exchange rate used: approximately ₹90 = $1 USD. Prices are approximations and vary by city, lifestyle, and personal choices. This article is for informational purposes only – not financial advice. Consult a qualified financial advisor for decisions specific to your situation.
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