Economy booms in India, now world’s cheapest place to live

INRAccording to new data, India is now ranked the world’s cheapest country to live in. It has beaten out its neighbours Pakistan and Nepal.

The report by Numbeo, says food, clothing and everyday items are all priced relatively low, while metropolitan hubs such as Delhi, Mumbai and Bangalore offer good salaries, making the country cheaper than elsewhere in the world.

Abhijit Banerjee, professor of Economics at Massachusetts Institute of Technology (MIT) said the large domestic market in India means that internally produced goods are easily affordable for most, and non-traded goods are very cheap in India, such as eating in a reasonable quality restaurant. Also, people are willing to work for very little, which means goods stay cheap.

Rs.100 equates to $1.50 in the US. According to data a beer in India is Rs.94, a bus ticket Rs.15, a litre of petrol is Rs.67 and a city apartment costs Rs.1,600 to rent per month.

Professor Banerjee who was born in Mumbai, compared the situation to that of Accra the capital of Ghana, where everyday items such as toothpaste are imported and expensive. He also says if you want quality in India you will pay the high prices, so one would probably have to settle for compromises.

The world has also been buying more from India, especially in software, IT services and agricultural products, which has brought much money back into the country and raised wages.

At the same time, Bihar state is one of the poorest regions in the whole of south Asia.

Other cheapest countries in the world after India are Moldova, Pakistan, Kazakhstan, Nepal, Ukraine, Georgia, Algeria, Azerbaijan and Colombia.