Mumbai retains top spot as India's most expensive city for expats: Mercer report

The Indian economy has been resilient compared to many other major economies. It has experienced significant growth, primarily driven by domestic demand and a thriving services sector, the report said.

Mumbai remains the most expensive Indian city for expatriates to live in, while Hong Kong tops the global ranks yet again, a survey by HR consultancy Mercer has found.

India’s financial capital has moved up 11 spots since 2023 to rank 136th globally, Mercer’s 2024 Cost of Living Survey found.

The report ranked 226 cities based on the cost of more than 200 items, including transportation, food, clothing, and entertainment. Singapore came in second followed by the Swiss city of Zurich in third place.

"In the face of global economic challenges, India has remained largely resilient in our 2024 Cost of Living Survey,” said Rahul Sharma, India Mobility Leader at Mercer.

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, Sharma said.

New Delhi at 164, rose four spots, Chennai at 189 dropped five positions and Bengaluru (195) slipped six spots. Hyderabad remained stable at 202, Pune climbed eight places to 205 and Kolkata rose four spots to 207.

Within Asia, Mumbai and Delhi moved up. Mumbai climbed six spots and Delhi two spots. Mumbai is ranked the 21st most expensive city in Asia for expatriates, while Delhi holds the 30th position among surveyed locations in the region.

The Indian economy has experienced significant growth, primarily driven by domestic demand and a thriving services sector, the report said.

Factors such as employment growth, a rising middle class, and overall economic growth positively impacted the cost of living in India.

In addition, the US dollar strengthened against most currencies, pushing up its cities in the ranking. Despite some low-price increases across Europe, several local currencies weakened against the dollar, pushing its cities down in the ranking.

On the contrary, the Indian rupee remained stable against the dollar, hence there is no significant dip in ranking for Indian cities, the report said.

Cost of goods overview  

Personal care, including cosmetics, toiletries, and beauty products, is the most expensive in Mumbai, closely followed by Chennai and the least expensive in Kolkata.

Mumbai and Pune remain the most expensive in terms of energy and utility costs. Milk and dairy products, bread products, beverages, oils, fruits and vegetables are the most economical in Kolkata followed by Pune.

Transportation costs encompassing automobiles, auto parts and running costs are the highest in Mumbai followed by Bangalore.

Alcohol and tobacco items are the least expensive in Delhi compared to Chennai, which has seen these costs go up by 20 percent in a year.

Housing rentals in expatriate neighbourhoods have increased in the range of three to six percent for Bengaluru and two to four percent for Pune, Hyderabad, and Chennai.

Delhi has seen the steepest increase at 12-15 percent as compared to the previous year. Mumbai saw a 6-8 percent. Expat housing costs in Kolkata saw the slowest rise of less than 2 percent among Indian cities.