Cost of Living Comparison: India vs USA vs UK (2025)

May 22, 2025

Thinking of working abroad? Or just curious how your monthly expenses compare with friends overseas? In this in-depth guide, we’ll compare the cost of living in India, USA and UK in 2025, including housing, food, transport, and more.

By the end of this article, you’ll know exactly how far your money goes in each country—and what salary you’d need to maintain the same lifestyle across borders.

Why This Comparison Matters in 2025

More Indians are working remotely, freelancing, or relocating abroad than ever before. But with global inflation, job uncertainty, and economic shifts, understanding real-world cost differences has never been more important.

Let’s break down the key categories you spend on every month and analyse the cost of Living India USA and UK

1. Housing & Rent

City	1BHK Rent (Monthly)
Mumbai (India)	₹30,000 – ₹50,000
New York (USA)	$2,800 – $4,500 (₹2.3L–₹3.7L)
London (UK)	£1,800 – £3,000 (₹1.9L–₹3.2L)

Rent in the USA and UK is 5–7x higher than in Indian metro cities. In smaller Indian cities like Pune or Kochi, rent can be as low as ₹10,000/month.

2. Groceries & Food

Item	India	USA	UK
1L Milk	₹55	$1.10 (₹90)	£1.20 (₹120)
12 Eggs	₹80	$3.00 (₹250)	£2.50 (₹250)
1kg Rice	₹60	$2.20 (₹180)	£1.80 (₹180)
Monthly Grocery (Basic)	₹6,000 – ₹8,000	$300 – $400	£250 – £350

Groceries in the USA and UK cost roughly 3–4 times more than in India for similar quality.

3. Transportation Costs

Mode	India	USA	UK
Public Transport (Monthly Pass)	₹1,200	$70 (₹5,800)	£90 (₹9,600)
Petrol (per litre)	₹102	$1.03 (₹86)	£1.48 (₹150)
Uber (10 km trip)	₹250	$15–$18 (₹1,200+)	£12–£15 (₹1,300+)

India remains significantly cheaper for daily travel. However, public transport quality and coverage are more advanced in the US and UK.

4. Healthcare & Insurance

India: ₹500–₹1,000 for basic doctor visit. Premium insurance ₹6,000/month (private).
USA: Without insurance, even a checkup can cost $200+. Employer-covered insurance is critical.
UK: NHS provides free healthcare. Private insurance optional but expensive (£100+/month).

Verdict: UK offers the best affordability due to the NHS. India has cheaper private options, but insurance is a must.

5. Education Costs

India: Private school fees = ₹1L–₹2L/year. MBA = ₹10–25L (IIMs)
USA: MBA = $60,000–$120,000. Private schooling = $15,000/year+
UK: MBA = £30,000–£60,000. Private schooling ~ £12,000/year

Verdict: Education abroad is expensive. Scholarships or sponsorships are often necessary to make it viable for Indian families.

What Salary Do You Need to Match an Indian Lifestyle?

Let’s say you live comfortably in India on ₹75,000/month in 2025. To match that lifestyle:

In the USA: You’d need ~$6,000/month (₹5L+)
In the UK: You’d need £4,000/month (₹4.3L+)

That’s almost 5–6x higher salary to maintain the same comfort level abroad.

How much you should save monthly in India ?

Key Takeaways

India offers the most affordable living, but infrastructure and wages differ.
The US and UK offer better public services—but require much higher income to survive comfortably.
Remote working for foreign clients while living in India (geo-arbitrage) is financially powerful.

Where Does Your Money Go the Farthest?

If you’re a global citizen or thinking about moving abroad, use this cost breakdown to plan better. If you’re earning in dollars or pounds and spending in rupees, you’re winning big. But if you plan to move abroad, negotiate salaries that reflect the true cost of living there.