Mercer's 2023 Cost of Living survey reveals that Mumbai is the most expensive city in India for expatriates. It is followed by New Delhi in the second position and Bengaluru in the third position. The survey includes 227 cities across five continents, with Mumbai positioned at 147 globally.
In the global ranking, Hong Kong secures the top position as the most expensive city for expatriates. Meanwhile, Mumbai's position at 147 reinforces its status as India's most expensive city for expats. Other Indian cities in the ranking include New Delhi (169), Chennai (184), Bengaluru (189), Hyderabad (202), Kolkata (211), and Pune (213).
Mercer's Cost of Living survey provides comprehensive data on the comparative cost of various items in each location, including housing, transportation, food, clothing, household goods, and entertainment. This information is valuable for international employers in designing fair and effective compensation packages for over 400 assignment locations worldwide.
The report highlights that globally, the most expensive cities for international employees this year are Hong Kong, Singapore, and Zurich.
The survey also identifies the least expensive locations, including Havana, Karachi, and Islamabad. Among Indian cities, Kolkata stands out as the most affordable option for residents and expatriates, with accommodation costs over 50% lower than Mumbai.
The shifting order of Indian cities in the global ranking can be attributed to various factors, including currency volatility and inflationary price increases in other regions. Mumbai and Delhi offer a cost-efficient destination for global multinational corporations (MNCs) seeking to establish operations overseas, with lower costs of living and expat accommodation compared to major cities in the Asia Pacific region like Shanghai, Beijing, and Tokyo.
Mumbai and Delhi rank among the top 35 most expensive cities in Asia for expatriates in the 2023 survey. Mumbai, although still costly, has moved down one spot within Asian cities to the 27th position compared to the previous year (2022).
Global Cost of Living Driven by Currency Volatility and Inflation
The Mercer Cost of Living Survey measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods and entertainment.
The survey is conducted annually and covers over 400 cities in over 90 countries.
The 2023 survey found that the cost of living in Mumbai has increased by 6% over the past year.
This increase is due to a number of factors, including rising inflation, currency volatility and the increasing demand for goods and services in Mumbai.
The cost of living in Mumbai is significantly higher than in other Indian cities.
For example, the cost of a one-bedroom apartment in Mumbai is three times the cost of a one-bedroom apartment in Kolkata.
The cost of living in Mumbai is also comparable to major cities in Europe and Asia.
For example, the cost of a meal in a mid-range restaurant in Mumbai is similar to the cost of a meal in a mid-range restaurant in London or Singapore.
Analysis: The high cost of living in Mumbai is a major challenge for businesses that operate in the city.
The high cost of living can make it difficult to attract and retain talent.
It can also make it difficult to operate a business profitably.
Businesses that operate in Mumbai need to find ways to reduce their costs or pass on the higher costs to their customers.
The high cost of living in Mumbai is also a challenge for residents of the city.
Many residents struggle to make ends meet and live in poverty.
The high cost of living is a major factor in the growing inequality in Mumbai.
The government of India needs to take steps to reduce the cost of living in Mumbai.
These steps could include providing subsidies for housing, food and transportation.
The government could also invest in infrastructure projects that would make it easier for people to get around the city.
Businesses that operate in Mumbai need to find ways to reduce their costs.
These steps could include negotiating lower rents, finding more efficient ways to operate and using technology to automate tasks.
Residents of Mumbai need to find ways to make ends meet.
These steps could include finding a roommate, cooking at home more often and using public transportation instead of taxis.