Mumbai has maintained its position as the most expensive city in India for expatriates, according to Mercer’s 2024 Cost of Living Survey released on June 17. The survey, which assessed living costs in over 400 cities worldwide, placed Mumbai at 136th globally, a notable rise from its previous ranking. This increase underscores the city’s rising cost of living, particularly impacting expatriate communities.
Despite Mumbai’s upward climb in the rankings, Rahul Sharma, India’s Global Mobility Leader at Mercer, highlighted a key advantage for companies: “In the face of global economic challenges, India has remained largely resilient. Despite Mumbai’s rise in rankings, the overall affordability of Indian cities remains a key advantage for multinational organisations or Indian companies looking to attract global talent.”
Mumbai’s position as the most expensive city in India is further emphasized by its ranking as the 21st most expensive city in Asia, according to the survey. New Delhi, another major Indian city, is ranked 30th in Asia, highlighting the region’s economic trends.
The survey also revealed cost disparities within India, with significant differences in housing, food, and transportation expenses. Expat housing costs have experienced a substantial rise across Indian cities, with Delhi leading the increase at 12-15 percent, followed by Mumbai at 6-8 percent. Bengaluru saw a 3-6 percent increase, while Pune, Hyderabad, and Chennai experienced a 2-4 percent rise. Kolkata, on the other hand, saw the smallest increase, under 2 percent.
Beyond housing, the survey shed light on other cost variations. Delhi offered the most affordable prices for alcohol and tobacco, while Chennai saw a 20 percent price increase over the past year. Mumbai, however, had the highest transportation costs, followed by Bengaluru.
In terms of food, Kolkata provided the most economical prices for essential items like milk, dairy products, bread, beverages, oils, fruits, and vegetables, closely followed by Pune. However, Mumbai and Pune topped the list for high energy and utility costs.
When it came to personal care items such as cosmetics and toiletries, Mumbai emerged as the most expensive city. Chennai was also found to be relatively costly, while Kolkata offered the most affordable prices in this category.
These findings highlight the diverse cost landscapes within India, offering valuable insights for both expatriates and businesses looking to navigate the country’s economic realities.
