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'₹23 lakh in India = ₹80 lakh in the US': Delhi researcher drops a reality check for dollar dreamers

'₹23 lakh in India = ₹80 lakh in the US': Delhi researcher drops a reality check for dollar dreamers

He backed it up with direct comparisons: a restaurant meal at ₹300 in India costs ₹1,700 in the U.S.; internet bills jump from ₹700 to ₹6,000; rent for similar housing spikes from ₹50,000 to ₹1.6 lakh.

Business Today Desk
Business Today Desk
  • Updated Jun 11, 2025 4:37 PM IST
'₹23 lakh in India = ₹80 lakh in the US': Delhi researcher drops a reality check for dollar dreamersPPP calculations themselves aren’t perfect. They rely on wide-ranging surveys that may be less reliable in developing countries

You only need ₹23 lakhs in India to match the lifestyle of someone earning ₹80 lakhs in the U.S. 

Shubham Chakraborty, a Delhi-based researcher, is challenging the NRI paycheck flex by calling out the way Indian professionals often compare global salaries without context. 

“Next time your cousin/friend who has settled in the US says he makes Rs 80 Lakhs a year, tell them you only need Rs 23 Lakhs to match their lifestyle in India,” he wrote on Linkedin, spotlighting the power of purchasing power parity (PPP).

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PPP, a measure used by economists and institutions like the IMF, adjusts incomes for local price levels to compare real value. 

According to IMF data, the PPP ratio between India and the U.S. stands at over 3:1—making Chakraborty’s claim a fair rule of thumb.

He backed it up with direct comparisons: a restaurant meal at ₹300 in India costs ₹1,700 in the U.S.; internet bills jump from ₹700 to ₹6,000; rent for similar housing spikes from ₹50,000 to ₹1.6 lakh.

But Chakraborty acknowledged the limits of the metric. “Developed countries often have better public services, technology, and opportunities. They may also offer better social security,” he noted.

Economists echo that PPP isn’t a catch-all. It assumes parity in goods and service quality—which often doesn’t hold. 

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Healthcare, education, and legal protections vary significantly. And personal factors like family needs or location can dramatically affect the cost and quality of life.

PPP calculations themselves aren’t perfect. They rely on wide-ranging surveys that may be less reliable in developing countries and can miss key nuances like non-tradable services and infrastructure quality. Still, Chakraborty’s post struck a nerve—prompting many to rethink what “earning more” really means in a global context.

Published on: Jun 11, 2025 4:37 PM IST
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