New Delhi, Chennai, and Bengaluru are among the top 10 cheapest cities in the world according to a Worldwide Cost of Living Survey ranking. Contrarily, Singapore and Hong Kong are the most expensive cities in the world, a position also shared by Paris.
These cities are followed by Zurich, Osaka, Geneva, Seoul, and Copenhagen in the same order. The survey was conducted by the Economist Intelligence Unit (EIU).
Survey To Help Corporates Decide Cost of Living Package
In general, it is a common opinion that metropolitan cities like Bengaluru or New Delhi are quite expensive. As compared to the other towns and rural areas in the country these cities undoubtedly are quite expensive. Compared with the metros across the world, these cities are not only cheaper but also among the 10 cheapest Asian cities.
The bi-annual survey released on March 19 ranked 133 cities from 93 countries and surveyed 50,000 individuals. The survey analyzed the cost of 150 items to come to this conclusion. These items include the cost of clothing, food, transportation cost, and utility bills.
The aim of this technically calculated survey is to help companies decide the cost of living allowances. It will also help them to come up with compensation packages for the expatriates and travelers.
According to EIU, more and more cities are becoming cheaper. It is mostly because of the impact of economic disruption and politics in these locations.
Bengaluru Is The Cheapest Asian Cities In The World
The survey ranked Mumbai at number 122 making it the costliest Indian cities in the world. The other Asian cities that are a part of the list of cheapest cities in the world includes New Delhi (123), Chennai (125), Karachi (127), and Bengaluru (129).
It means Bengaluru is the cheapest Asian cities in the world. Also, it is twice cheaper than the topmost three most expensive cities.
These rankings should not be surprising to those who know a bit about economics and getting the best value for money. Traditionally the South Asian cities have been at the forefront for offering the best value for money, particularly those from India and Pakistan.
Large Disparity In Indian Incomes Increasing Affordability
The survey says that there is a large scale disparity in the incomes of people. It has led to the creation of various affordability layers in India.
In its release, EIU said, “India is tipped for rapid economic expansion but, in per head terms, wage and spending growth will remain low. Income inequality means that low wages are the norm, limiting household spending and creating many tiers of pricing as well as strong competition from a range of retail sources.”
The release further says, “This, combined with a cheap and plentiful supply of goods into cities from rural producers with short supply chains as well as government subsidies on some products, has kept prices down, especially by Western standards.”