Buying power of US Dollar vs. Rupee. Price of Food, Clothes, Inflation

Inflation USA vs India Cost of Living

by Kumar · 52 comments

When I call my parents in India, my Mom asks about prices of vegetables, clothes and other stuff in US. I tell the price in dollars…when I complain about prices of few things in America, she replies saying, “for you guys living in America, one dollar is equal to one rupee…so it is ok…” I right away reply to my mom, “A dollar is never equal to rupee…the buying power of one Dollar is much higher than a rupee in India.” I quote an example saying, “in America, people can get a cheap cheese burger for a dollar or even cheaper taco in taco bell for 80 cents or so…but, what can you buy for a rupee in India…Nothing ! ”. In general, it is not logical to compare both currencies as their value is different, but just trying to explain the perceptions of people about currency. This article is part of the series Settle in US or  India and will focus on inflation, cost of various things and how things are changing in America vs. India.

Inflation of USA vs India, Economy growth rate.

If you look at both of these graphs, you get a clear idea of the inflation rates based on consumer price index. In India, the inflation rate is over 10% or hovering around there…whereas in America, the inflation is under 2% and there was deflation in USA during recession.  United States Inflation rate HistoryInflation in India Historical DataLogically, what is happening is, due to inflation in India prices are going up crazy and the effective buying power of a rupee is decreasing.  People who work in IT companies in India, get Salary hikes ranging from 15% to 30% every year, where as in America the average hike per year in salary is around 3%. The logical reason for the disparity in the hike is the inflation. Also,  Indian economy is a growth phase and we can expect to have the inflation for the new decade or so…who knows…

You can get good branded clothes in US for relatively less price, depending on sale or time of season….I took out few friends, who came from India few weeks ago, to shopping malls and outlet malls to buy clothes and shoes…they were surprised by the price of clothes and shoes in America….they said US prices were relatively cheap for the good brands they were buying….to add more, food is relatively cheap in America when compared to price of the food with India…Just a note, I am talking about the upper middle class people in India who have an IT job or a well paying job leading a lifestyle of spending money in Malls, multiplexes, etc…

Decision to Live in India vs. USA based on  Inflation

On a macro level, based on the inflation data presented above and the continuing growth rate of Indian economy, it is a good idea to stay in America for next decade or so until the Indian economy stabilizes….the sole point of staying in US is based on stable economy and less inflation… If you stay in India and save money, unless you get over 10% interest rate on your savings, your savings money is not enough to meet inflation and it is worth nothing.…Also, you would have to pay lot more money for house interest rates and other stuff…there are so many things, I am just talking on a very high level…

What do you think about Inflation India vs. America ?

Image Credit : http://www.springercreative.com/uploads/preview/Inflation.gif

Data presentation credit : http://www.tradingeconomics.com/Economics/Inflation-CPI.aspx?Symbol=USD

{ 51 comments… read them below or add one }

abhay May 15, 2014 at 5:15 pm

Interesting, but also compare life quality, ameneties we gets. In mumbai could you imagine how people travel to work from cramped virar local to churchgate ? Even person getting 10 lacs Rs salary unable to afford car as petrol rates are high. In US no pollution os there and you gets swimming pool , club in most residential áreas.

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ANKUR June 22, 2014 at 2:33 am

I am shocked to know about some comments of indian peoples who are staying in US. These IT guys does are not understanding that they are being hired by US IT companies or MNC’s because of below reasons.

- Their brain is indian not american.
- They are cheaper than american.
- They like to be ruled by others.

When it comes their turn to do so something for their country, these guys have opted US just because it gives more salary, but things are not as easy as it seems in US. May be you cannot smell but you guys are under threat. Anytime US government can throw you out of the country realizing that you are taking away the job opportunities. You born here, studies here and now making money for other countries and working like a fool. This makes you perfect choice for US companies. Are you not one of the reason for rising inflation in india?

But you should understand that the life in INDIA is not so bad as you think. There are thousands of good cities in india where 1BHK houses are even below 10 lac. An average guy having family of 4 can easily survive in 15000 INR. But it depends upon your life style and desires. In India, everyone is living. But it is also fact that majority of population cannot afford things but we must contribute to improve things rather than criticizing. Remember, if you are pointing a finger to someone, the remaining fingers are pointed towards you.

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Vishnu Anilkumar July 14, 2014 at 12:25 pm

I dont agree with what Ankur said….
Taking money from abroad and converting to INR…
From where I stand it sounds like they are doing more good than harm…

As for improving things… As I understand, 1 Indian Rupee was equivalant to 1 USD during 1947s… http://articles.economictimes.indiatimes.com/2013-08-24/news/41444029_1_indian-rupee-american-currency-continued-dollar-demand

“An average guy having family of 4 can easily survive in 15000 INR.” I have seen people living with much lesser money… But this article is not about whether you can survive.

Does India have the potential to grow… Yes… maybe…
Do i see it growing? No
Would I bet on its future growth: No
I predict Indian Currency will become the next Africa…
(Reasons Unknown : Dont know where all the money dissappears)

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ANKUR August 29, 2014 at 3:29 am

Vishnu & fauji,

My comment was for those indian’s who are now settled in abroad and thinks peoples who lives in india are poor & emotional fool because now they have started earnings in USD!!! I also had chance to work with US company but i opted indian company just because i want to contribute something for my country. I got everything which is required for a family to live smoothly in India. Things are little bit difficult, but not out of control which most of the US – INDIAN’s think. And also fauj is not the only way to serve your nation, fauj can’t do anything till they have orders from ministers, which are more corrupted. Else every nations has its prons & cons, so as india, but being a indian citizen, you must not criticize your nation. This was my point.

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ajay August 28, 2014 at 12:16 pm

Bhai Tau Ankur

Everything in life is not about ki BHK kitne mein milega.
What is your Happiness index?????
What is the value of your life?????
What are you feeding ure kids with bloody corrupt officers sampling ure food????
itna hi passion hai toh kyon nahin deshwasi fauj mein bharti hote coz thats the only institution left which works.?????
baatein aasaan hain mere dost zindagi dekhi hai idhar.

take care
A Fauji

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S March 15, 2014 at 3:05 pm

You Morons! do not try to compare cheese and shit(chalk would be too mild a word). A very simple explanation for the difference in US economy and that of India is that US population density is 34.2 persons per sq km and that of India is 377.2 per sq km. This simply means in the US, 2 persons are sharing a loaf of bread, where as in India, 22 are jumping on a single loaf of bread, fighting among themselves to get a larger share. Apart from this, the US has a largely working government machinery and mostly law abiding people. Whereas in India, we have the worst scum as politicians and bureaucrats, the kind who need to be guillotined, ruling and deciding policy, which explains the exploding population(I will not go into the details of why this happened), most of which is the dirty shit which brings these scum to power, and other malaise.

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AdvocateSarin March 8, 2014 at 12:25 pm

Dear Commentators & the writer, when I opened this article I had expected there may be some practical information and comparative studies or the information relating to the real issues pertaining to the people wishing to relocate but sorry to say that most of the comments are just irrelevant and writers have just indulged in data manipulations or jugglery. There is no doubt USA is a great Power and Most of the Indians specially Hindus like the US policies unless one is biased due to some political beliefs or personal reasons. Otherwise if you actually consider both have totally different way of life. Poverty is there in both countries. The problems in India may be more visible due to the number of people or due to the mismanagement of economy by the respective Governments. The lifestyle in India is not as bad as most of the writers have commented. Life style in USA is also not as much good as people have mentioned. In India there are many different classes and if you talk about the purchasing power parity between two that the number of people having far more purchasing power than average american is far more than the total US population . It may seems difficult for you to grasp but as most of you are the IT people knows the computers well can verify from World Bank figures. The real PPP of India is hidden because we have a far bigger cash economy than the one monitored by the RBI & the Government. So gentlemen if you really wish to guide people who wish to migrate to US or west guide them by contributing positively and am sure that will help many from coming to US or UK by illegal means through agents or criminal ways and make their lives hell. You explain them the Low Interest rates in US, High Medical Costs & Insurances, the truth of Social Security System and the property taxes etc. These points along with the real information like living without work and retirement life etc. As you are aware in India if you have a million dollar equ at the time of retirement means you have a stable income of Rs.6,000,000./PA or USD 100000.00 without doing anything but on other side can a person having USD1 million survive a retirement life as the Banks there will not pay him anything more than USD. 15000 P/A with which he cant even pay his car insurance or house taxes forget the other things. So in short the comparison can’t be just made on the basis of prices or value of rupee or its purchasing power. It has to be other factors and if you people wish to contribute for the benefits of others please contribute positively without saying bad about India or US or any other countries.

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the American November 14, 2013 at 11:28 pm

All of you stupid Indian patriots have no idea what your talking about, look at it this way, if an average mid-level police officer wants to buy a house in Mumbai the average salary is 4000 rs a month, now the average price of a1000 sq ft house is about 4 cr on the less expensive areas, worli etc
Considering that he DOES NOT have any other expenses and ALL of his salary is used for the house, it would take him 10,000 months. Whereas in America on an average salary of 4,000 DOLLARS a month and an average price of 200000 dollars on the west coast -2000 for other expenses it
Would take him 100 months that’s with other expenses of 2000 dollars. The inr is basically the biggest piece of crap in the world

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Vivek November 15, 2013 at 9:39 am

Is it so difficult for you to use Google? A peon makes over 8000 Rs. The salaries are listed on the website acbmaharashtra dot gov dot in/rti_j dot asp

You believe Worli is one of the less expensive areas in Mumbai? What planet do you live on? And if you want to know where the cheaper flats are, Google “flats upto 20 lakhs”. Policemen don’t need to live in the most exclusive areas.

The Indian economy versus real estate is topsy-turvy, but that’s no excuse for you to refuse to check your “facts” before you post.

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Complete Opposite March 5, 2014 at 12:15 am

Hey American, I assume you are a low self esteem INdian hiding behind the garb of an ‘American’. Let me try to put your average life in place: you were a below avg student in INdia….got a 60% ( if that…) in 12th….did some diploma in INdia. Eventually, joined a donation based institute and made it to the U.S. on a H1 sometime in 1999 ( along with the other Y2K bunch of morons)…All you did was window shopped at the mall, bought shoes at Payless, groceries at Walmart or a discount based community grocery store, only dreamt about having a maid, lest I forget those 2 cents/min calling cards you bought at Patel Brothers…..where you went in your Toyota Camry ( the high end dream car ), pictures of which were taken in abundance in your parking lot. HOw did it feel carrying that grocery up to the 2nd floor in your apartment. Remember, you will always be the curry smelling, wanna be IT geek who will be dying to get a senior mgmt position in INdia where you can truly enjoy the luxuries, get recognized for your position, but unfortunately you will only dream of it while you read terrible news articles in INdia Abroad newspaper that you pick up for free at the temple visit every week ( your definition of having a social life!!)

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Rohit June 14, 2014 at 2:07 pm

This reply is awesome and very true. Especially the Toyota Camry one. I am an Indian staying in US which sucks, I like London, UK more :P.
Personally, I hate the way Indian people who come over to US live their life.
It’s pathetic and I need to get back to my home, which is London :P

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AdvocateSarin March 8, 2014 at 12:41 pm

Dear American Average starting salary of a Policemen in Mumbai after adding DA and the other cash benefits roughly comes to Rs.22000.PM apart from salary he gets free medical treatment for his whole family and parents. He may or may not get official free accommodation that depends on his posting and availability. To buy a single bedroom house in New Bombay you require Rs.20 lac or so. And every one who works as a police constable or ordinary person does not supposed to have a house in Mumbai similarly as every engineer working in Manhattan New York can’t afford to have a house or apartment there. I know most of the IT engineers working in US are getting around USD5000. PM, many people working with all those banks and Financial institutions in Manhattan are getting even 3-4K PM. Last sunday I was in a apartment at 42nd street New York where the rent for single bedroom apartment without utilities was USD6500/PM so can we say an engineer working in New york cant even rent a single bedroom flat near his workplace.

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Jeevan September 3, 2013 at 2:06 pm

PLEASE READ THIS ITS
MY HUMBLE
REQUEST…….. ……..YOU CAN MAKE A
HUGE DIFFERENCE TO
THE INDIAN ECONOMY .
4 years back 1 US $ =
IND Rs 43.225
(lowest) & now 1 $ = IND Rs
67.7 Do you think US
Economy is booming?
No, but Indian
Economy is
Going Down. Our economy is in your
hands…
A cold drink that
costs only 70 / 80
paisa
toproduce, is sold for Rs.9 and a major chunk
of profits from these
are sent abroad. This
is
a serious drain on
INDIAN economy. What you can do
about it?
1. Buy only products
manufactured by
WHOLLY INDIAN
COMPANIES. 2.You don’t need to
give-up your
lifestyle. You just
need to choose
an alternate product.
All categories of products are
available from
WHOLLY INDIAN
COMPANIES.
LIST OF PRODUCTS
COLD DRINKS:- DRINK LEMON JUICE,
FRESH FRUITJUICES,
CHILLED LASSI (SWEET
OR SOUR), BUTTER
MILK,
COCONUT WATER, JAL JEERA, ENERJEE,and
MASALA MILK…
INSTEAD OF COCA
COLA, PEPSI, LIMCA,
MIRINDA,
SPRITE BATHING SOAP:- USE CINTHOL & OTHER
GODREJ BRANDS,
SANTOOR, WIPRO
SHIKAKAI, MYSORE
SANDAL, MARGO, NEEM,
EVITA, MEDIMIX, GANGA ,
NIRMA BATH &
CHANDRIKA
INSTEAD OF LUX,
LIFEBUOY, REXONA, LIRIL,
DOVE, PEARS, HAMAM, LESANCY, CAMAY,
PALMOLIVE
TOOTH PASTE:-
USE NEEM, BABOOL, PROMISE,
VICO
VAJRADANTI, PRUDENT, DABUR
PRODUCTS,
MISWAK
INSTEAD OF COLGATE, CLOSE
UP, PEPSODENT,
CIBACA, FORHANS, MENTADENT. TOOTH
BRUSH: -
USE PRUDENT,
AJANTA , PROMISE INSTEAD
OF COLGATE,
CLOSE UP, PEPSODENT, FORHANS, ORAL-B
SHAVING CREAM:-
USE GODREJ, EMAMI
INSTEAD OF PALMOLIVE, OLD
SPICE, GILLETE
BLADE:- USE SUPERMAX,
TOPAZ, LAZER,
ASHOKA INSTEAD OF SEVEN-
O -
CLOCK, 365, GILLETTE
TALCUM POWDER:- USE SANTOOR, GOKUL,
CINTHOL, WIPRO
BABY POWDER, BOROPLUS
INSTEAD OF PONDS,
OLD SPICE, JOHNSON’S
BABY POWDER, SHOWER TO
SHOWER MILK POWDER:-
USE INDIANA, AMUL,
AMULYA INSTEAD OF
ANIKSPRAY,
MILKANA, EVERYDAY MILK, MILKMAID. SHAMPOO:-
USE NIRMA, VELVETTE
INSTEAD OF HALO, ALL
CLEAR, NYLE, SUNSILK,
HEAD AND
SHOULDERS, PANTENE MOBILE CONNECTIONS:-
USE BSNL, AIRTEL ,
RELIANCE .
INSTEAD OF Vodafone
Food Items:-
Eat Tandoori chicken . home made food
INSTEAD OF KFC,
MACDONALD’S, PIZZA
HUT, A&W
Deodrant :-
use REXONA instead of AXE , FA etc
Every INDIAN product
you buy makes a big
difference. It saves
INDIA. Let us take a
firm decision today. BUY INDIAN TO BE
INDIAN…
EVERY TRUE INDIAN
WILL SHARE IT?
Thanks For Spending your
valuable time ….. I ve done my
duty Will
U ???

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vikas September 13, 2013 at 11:06 am

thankyou….u r true patriotic

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ashok bapat September 18, 2013 at 9:44 pm

yes , u r right unless u give a boost to national products they will not get boost and the quality will also not improve I tend to bye national products I agree they a bit lower in quality but unless u bye them they can not develop an r&d to develop them one must bye national products that is gandhiji started his campaign

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neel patri February 2, 2014 at 10:24 pm

Pls, it is buy not bye!

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abhijit sarkar April 20, 2014 at 6:35 am

absolutely,the true lies over here.thanks.

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oviheros September 2, 2013 at 12:34 pm

in Tamil naadu, there is a Family politicain called as kalaingar.
he and his families(he has 6 wifes , 17 children, 36 grand children as of now ) members are stolen around 200 billion from Govt of India/Tamilnaadu . if he and his families are releasing money than 1 indian rupee will get equal to 1 dollor

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Dr.S.M.Raju August 29, 2013 at 10:07 am

Indian economy is mainly based on agriculture. But, at present agriculture has taken back seat, since our politicians has no idea of economics and are arrogant. Agriculture laborers are not available, since all sorts of free bees are provided including Rs 6000 allowance if women become pregnant (no logic can approve this). This is just one example I have given. Every single decision taken taken by politicians since independence appear wrong. If all the decisions are undone and allow people to work as much as they can and earn as much money as they can the country can progress without any limits. The INR exchange rate will be 1 INR = 1US dollar or even 1 INR = 1.8 US dollor.

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Dr.S.M.Raju August 29, 2013 at 10:04 am

Indian economy is mainly based on agriculture. But, at present agriculture has taken back seat, since our politicians has no idea of economics and are arrogant. Agriculture laborers are not available, since all sorts of free bees are provided including Rs 6000 allowance if women become pregnant (no logic can approve this). This is just one example I have given. Every single decision taken taken by politicians since independence appear wrong. If all the decisions are undone and allow people to work as much as they can and earn as much money as they can the country can progress without any limits. The INR exchange rate will be 1 INR = 1US dollar or even 1 INR = 0.8 US dollor.

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Prashant July 9, 2013 at 11:06 pm

These non sense articles are written with such high immaturity. WTF, comparing bloody numbers to settle somewhere.

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JK March 2, 2013 at 4:52 am

“food is relatively cheap in America when compared to price of the food with India”

that can be rephrased as “food is relatively cheap in America when compared to price of american food with India”. You need to compare it with indian cuisine to get the real picture.

As u say dining out in multiplexes, etc. where you’ll be buying burgers, subways etc. those cost same or more in India compared to US and these are “western” cuisines in India. Typical Indian food like Rice, Rotis, Curry etc. costs much less and so you should not be comparing the same type of food (burger for ex), instead compare an avg meal cost for a person in India or USA.

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Joshua T. Sharrow February 22, 2013 at 3:56 am

Definitely its a brief discussion about inflation with a comparison with USA vs India. From my thinking India’s most inflation rate really higher than other developed countries. So I am as a Indian, very worried about this. Maximum indian any executive officer, who got his sallery bellow 40000, he really expenses a hard life with his family.

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R. S. Amblee January 15, 2013 at 10:02 pm

Hold on guys! Comparing prices between US and India is misleading as the
prices keep changing as the dynamics change. India is going thru a rapid
growth. Whatever growth happened in US in 100 yrs or so, is happening in 10 ys in India.
With this kind of rapid growth, there will be inflation and price fluctuation, not to mention the chaos.
Comparing the living standards between these two countries merely by looking at the
Prices would be misleading.
Indian GDP is growing at more than 10% while US is barely at 3%.
Growth in India will continue as long as skilled labor continues to be available.
Once this reaches its limit, ie., when it becomes hard to find qualified workers
the jobs will start moving elsewhere. Will it happen?
Looking at the number of colleges and number of students graduating, this will not happen in the near future. India will continue to produce more graduates and outsourcing will continue for a long time.
If you look at today’s India, there is a mini USA in India itself. This mini USA is growing bigger. Very soon we will see much more improvement in living standards and as well as infrastructure growth.
However this will not go on forever. As the standard of living keeps increasing so does the cost of labor. When the labor cost becomes too much just like US, the employers will start looking for cheap labor elsewhere. Now the million dollar question is, will other countries step up to the plate and absorb all those jobs?
It is hard. It is not just the cheap labor that matters, it is the hi-tech skilled labor and also their number. We are talking about a scenario in ten or twenty years from now. At that time the demand for labor will be so much that other countries may not be ready to supply that many graduates and that high skill level. However, if they do, then the jobs will start flowing to those countries. By then, if India had attained a self-reliable economy, then it will not only survive but will continue to flourish.
On the other hand, if other countries fail to pick up this opportunity, then India will move into the age of automation where we begin rely on robots and other machines as human labor become very expensive. This is a very likely scenario. Even if BRIC countries [Brazil, Russia, India, China] do contribute to global economy, their effect will not be very high as the population of India will dilute all those effects. If this happens, India will eventually become a highly advanced country and will lead the world towards a brighter and prosperous future.
In any case, India right now is in a very prominent position – High skill level and high number of graduate turn out. This is its strength. In fact this will be the strength for any nation to prosper in the future. It is not earthly resources that matter anymore. It is human skill level that decides the fate of a country.
India should be proud to be able to give a strong hand in the global economy. Indians should all be proud of their Indian origin. The high population that once burdensome to India now has become an asset. What a marvelous transformation. We have an extraordinary opportunity to lead the world to a safe, prosperous and advanced future. This opportunity also comes with responsibility. So let brace up for that magnanimous technological evolution.

R.S. Amblee
Author: “The Art of Looking into the Future: The Five Principles of Technological Evolution”

My other blogs: http://www.goodreads.com/author_blog_posts/3309127-future-of-outsourcing

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Narayan Babu July 24, 2013 at 9:01 am

That 10 yrs is wrong , when the blackmoney reduces in our country, then we shall emerge as a powerful state

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Sourav August 10, 2013 at 1:51 pm

Really “Mini USA”, infact minnier usa. Americans earn an average salary of $3000 per month, we too, but in Devalued Rupees. Come to the road with me and think. Most BPOs and IT companies in India still pay Rs 3000 in Kolkata, maybe also in other cities. GDP is the amount of goods purchased in year, just compare it with Per Capita Income. You will come to the bottomline that only Rich and Wealthier people can really afford to buy Nice goods in India.

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Ajay Chavan November 5, 2012 at 4:04 pm

Completely mis leading.. you guys living in US dont know what you are loosing.. Purchasing power of indian rupees is 3 times higher than US dollar refer (http://en.wikipedia.org/wiki/Purchasing_power_parity) or refer to PPP adjusted GDP of india in USD term.. Purchasing power is not decided by prices of jeans it is whole basket of consumer goods..

One example – My fiends bought hous in US in 2004 for 3000k USD that is 1.2cr INR, if he had bought house in India say in mumbai for 1.2cr now the price whould have been 5cr and in USD term ~1milion but price of house in usd has infact fallen.. these guy is crying .. he feels he did big mistake buying house in USA..

Quit USA if you want to save whatever is left because value of dollar is going to fall much more and may godown to as low as zero… reason is simple USA is printing since last 15 years and you guys have not realised this.. I feel sorry for everyone who went to USA as late as 2000 when it was very clear that linving in USA is like loosing all hard earn money over life.. again reason is simple.. inflation tax.. you guys are paying inflation tax… read macro economis .. please for your own benefit read macro exconomics .. hereis link to material on macro economics.. this will prove what i am saying….
http://www.youtube.com/watch?v=8beotA9cpgM&feature=relmfu

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Avdhesh November 6, 2012 at 10:58 am

Mr Ajay chavan. I haven’t seen the video that u attached, but on other issues you are almost completely wrong and the author of article is right. You say your friend bought house in US in 2004 in 3000k USD, that house still cost maybe 3200k usd or something. But the same house now cost 5 times in India, that means that Indian currency is depreciating in buying power more AND its buying value is decreasing. That means that Rupee is depriciating in real terms. What u could have bought by 1 crore, few years before now costs 5 , but your salaries would have at most doubled maybe (if u are lucky). So tell me Mr who is losing more?

The good thing for an american is that there is very low inflation and affordability of money is much more. An engineer can buy house in one or two year’s salary there, but in India you are not sure even salary of 10-20 years can buy you that.

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Abhinay September 17, 2013 at 8:39 am

Exactly.!

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Pani December 7, 2012 at 8:51 pm

Dear ajay chavan
Ppp of rupee can never outpower pppof $..RBI rules prevent it from doing so..rephrase ur sentences, usa remained the leader in world market fr more than seven and half decades..not just one or two years

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john March 21, 2013 at 12:20 am

$1.25 in the year 2009 has the same “purchase power” as $1 in the year 2000.dollar is only worth .274 cents, more than 74% of it’s value lost
$1.64 in the year 2009 has the same “purchase power” as $1 in the year 1990.
$2.60 in the year 2009 has the same “purchase power” as $1 in the year 1980.
$5.52 in the year 2009 has the same “purchase power” as $1 in the year 1970 dollar is taken off gold standard
$7.24 in the year 2009 has the same “purchase power” as $1 in the year 1960.
$8.91 in the year 2009 has the same “purchase power” as $1 in the year 1950.
$15.30 in the year 2009 has the same “purchase power” as $1 in the year 1940. from here never increases in value only loses value
$12.80 in the year 2009 has the same “purchase power” as $1 in the year 1930. the great depression starts to end
$10.70 in the year 2009 has the same “purchase power” as $1 in the year 1920 start of the great depression lost more than 50% of it’s value
$22.30 in the year 2009 has the same “purchase power” as $1 in the year 1913. federal reserve act.(voted in by DEMOCRATS)
$23.30 in the year 2009 has the same “purchase power” as $1 in the year 1910. Dollar never dropped below 80% of it’s value
$26.40 in the year 2009 has the same “purchase power” as $1 in the year 1900
$24.30 in the year 2009 has the same “purchase power” as $1 in the year 1890.
$21.60 in the year 2009 has the same “purchase power” as $1 in the year 1880.
$17.00 in the year 2009 has the same “purchase power” as $1 in the year 1870
$26.60 in the year 2009 has the same “purchase power” as $1 in the year 1860.
$28.30 in the year 2009 has the same “purchase power” as $1 in the year 1850.
$25.60 in the year 2009 has the same “purchase power” as $1 in the year 1840.
$24.00 in the year 2009 has the same “purchase power” as $1 in the year 1830.
$18.90 in the year 2009 has the same “purchase power” as $1 in the year 1820.
$18.00 in the year 2009 has the same “purchase power” as $1 in the year 1810.
$17.60 in the year 2009 has the same “purchase power” as $1 in the year 1800.
$27.40 in the year 2009 has the same “purchase power” as $1 in the year 1774.

the dollar is crap, and this list goes to show how crap it is. at todays value vs 1774 it’s worth $.03
good luck making people believe that crap you just posted

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Vivek October 26, 2013 at 1:53 pm

In 1984, I used to buy dosas in Bangalore for 1-2 rupees(even less, 80p, at Sangam on Brigade Road). 30 years later, it is 35-40 rupees. I bought samosas for 25p, and now it costs 12-15 Rs. The house my parents bought for 8 lakhs(1984) is “worth” 4 crores now. A senior Class 1 central govt officer used to earn around 1800-2100 Rs. Today they make over 70,000 per month. What it took 225 years in the US, it only took 30 years in India. People who saved their money and put it into FDs for retirement got screwed big time. But the USD which was ~9 Rs is only 7 times higher at around 62, thanks to India keeping rupee high because of oil import concerns. And 97% of Indians live on less than $5 a day. Which currency is crap, again?

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User October 26, 2013 at 7:20 pm

Indian rupee is toh crap only. I toh convert all my rupees to dollars only.

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Kush Bhargava June 2, 2014 at 2:50 am

Purchasing power parity arguments can go on, but after traveling all my life, I know that today the dollars real value is Rs 25.00 only,in terms of what a dollar can buy in U.S. and the rupee in India.

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Sourav August 10, 2013 at 1:58 pm

Just go to the market and compare the amount of goods you purchased with the salary you withdraw per month, versus USA. You will come to know.
Just ask for Medicare, you will know.
Go to the leading Health Insurance company and ask for Maternity coverage and you will know.
Go to any bank and ask for a Home Loan with a Salary of Rs. 3000/ 15000 per month and you will know.
If you still think this is misleading, then you must be a really rich/wealthy person, or a fool. Believe me I was a fool too to be proud, of nothing.

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Chako April 29, 2012 at 5:48 pm

What about very basic needs? What I mean is,
when I donate fifty US dollars (2500 Rupees)
to my orphanage friends, how much can they get
in the way of dal rice and clean clothing? mango ice cream would be nice. Can they keep the lights on?

thanks

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Sandy August 14, 2012 at 7:31 pm

Hey Chako,
I hope u read my answer to ur very sweet question. :-)
A mango icecream = 15 Rs
An ok pair of clothes for a child = 250 Rs
Dal-Rice for a kid one time = 20 Rs
Light depends upon whether there is power or not. There are big power-cuts almost everywhere, you see.
But 1 unit kwh = 5 Rs
So you see its very easy and cheap to make your friends there feel nice.
Sandy

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karthik March 13, 2012 at 11:20 pm

DEAR SIR : G.KARTHIK I MAY THING THAT YOU HAVE RECIVED THE NEW MESSAGE YESTERDAY YOU PAID MONEY 6,500 IN INDIAN BANK AT 1:54 pm I HAVE RECIVED THE MONEY FROM YOU I HAVE SENT THE YOUR MONEY TO THE CENTRAL GOVERNMENY OF INDIA RS 6,300 I WAS TAKEN MY SERVICE CHARGE RS 300 THEY WILL TAKE THE INCOME TAX AND REVINULE YOUR MONEY TO RESIVE BANK INDIA TO INTER CHANGE THE US DOLLERDS TO INDIAN COURENCY THEN IT GOES TO NEW DELHI AND YOU WILL GOT YOUR AT PERIOD OF DATE:20/5/2012 day :SUNDAY MONTH:may thanku for useing our network to inter change the money be carefull dont invest to other peoples they will take your money and they cheat you mind that your in international company job do well next you interchange your money in credit okay thanku

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Adarsh Gupta K April 21, 2013 at 2:11 pm

SPAM ??

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Raj March 13, 2012 at 9:00 pm

Hi

I am currently on L1B visa and my visa is going to get expired in April 2012, my company is going to apply for L1A extension. Question is can we get the indian visa for our to be born child on the basis of L1A extension receipt? What are the options to get Indian visa for our child in case of our L1A extension gets denied?

Thanks

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karthik March 13, 2012 at 8:28 pm

thanku sir g.karthik you have send money to the card number 999245706 has succesfully transmited

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Adarsh Gupta K April 21, 2013 at 2:12 pm

SPAM again ??

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rajan February 23, 2012 at 12:10 pm

In fact I was in Bangalore in September last year and wanted to buy a jeans, guess what, it was over Rs4,000. I dare not buy, I could get one in Costco for $12

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Avdhesh September 11, 2011 at 2:21 pm

Hmmm…..the points u made here is a good start of a discussion.
If you compare in terms of purchasing power parity, the value of a dollar in rupee terms is around 20, whereas the exchange rate is 47. Hence the rupee is undervalued or has been deliberately made undervalue due to various reasons which we are not discussing here.
The impact of this is whatever India is buying in dollar, it is paying more than double.
Obviously, it is better to be in US compared to India due to these reasons. In US a decent engineer salary is more than sufficient to live comfortably and save a large part. Whereas in India the salary of an engineer is barely sufficient. In a good city of US u can buy a large lavish house in around 300,000 $, which is around approx. 5 years of an engineer’s salary give or take. If u buy a flat in Delhi today leave alone a lavish house, u will have to giveaway almost 10-15 years of salary. And buying a lavish house is impossible for even the highest salary paid officials.

Its about time India need to think about what it is paying for resources like Oil (more than double in reality) and what it is getting for its resources like iron ore (less than half in reality). Revaluation and letting the currency to appreciate should be thought, else u are just giving away your precious resources to countries like US and Europe whose currencies are overvalued abnormally (European currencies are the most overvalued in the whole world!!)
For more clarifications google PPP (Purchasing power parity)

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Ravindra Jayawant November 15, 2011 at 6:26 am

Yeap, I fully agree that the rupee has been possibly under valued deliberately. In such case the ratio of Import to Export in terms of USD is to be necessarily maintained in the same ratio the rupee is undervalued. Considering the present situation and the ratio of rupee under valued with respect to USD, the ratio is around 2.3 i.e. India has to increase its export 2.3 times its import. This is the basic that we all need to understand and act. There can be political pressures from outside to keep our currency under valued. It is not the time to confront and get the equal ratio but it is time for all of us to look into the possible avenues, products & services those can be converted to values and exported to other countries where we can generate our export business and try and reach the ratio of under valued rupee. To make the life in India better we have to see that the ratio of under value of rupee is not further increased but rather brought down. Unless the purchase power of rupee is increased the souring prices of commodities will never come down. We have to exert ourselves to reduce our requirements of import and increase the export and realize the money. The bank interest rates are decided by RBI, which will always be few points less than the prevailing rate of inflation, this will be always the same in any country because no country would like to print bills just to pay the interest on deposits.

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John April 19, 2011 at 4:28 pm

How about if one was planning on going to India for an extended period of time in like 5 years? The interest rates in India are great (I saw 9%-11% for resident Indians) compared to the 1/2% in the US. If I were to start depositing money into a safe savings account (without going into details on how, that is irrelevant), wouldn’t you get more for your dollar than just having money sitting in a US account making next to nil? As long as the money was just kept in the account and re-invested, is what I am talking about.

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Saurabh April 23, 2011 at 2:27 am

Few things you need to keep in mind:
- If you are living in US and have NRI status, then technically/legally your Indian accounts should be converted to NRO or NRE
- Interest rates on NRE/NRO accounts is not 7-9% but more in the range of 3-5%
- You need to pay US income tax on interest generated in NRE accounts. Banks like Citi actually issue you a 1099 for your NRE account. I know a lot of Indian banks don’t issue 1099, but legally they are supposed to
- If you have more than 10K USD in bank assets outside US, the same needs to be declared in your US tax return
- While looking at the interest rate, you need to take conversion rates into consideration as well. At least one way of conversion rate will apply (USD to INR); the other may or may not apply depending upon whether you plan to bring that money back to US or not

I am not saying that Indian investments are not attractive, but they aren’t as attractive as they look from outside (assuming one decides to follow all rules and procedures).

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Rajesh October 10, 2010 at 5:43 pm

The Comparison is good, But it Would be more useful if we can compare in terms of % wise the Salary & Expenditure..For eg: India, a person who is getting 50,000 p.m.salary,he or she will have to spend 10,000 rent, 8000 food, utilities etc..expenses, 5000 other expenses for a family of 2 or 3.
Where as a person in US getting around $4000 p.m. would spend $1000 rent, $300 food,utilities, $200 other expenses..So all the expenditures %-wise in India are much higher to US. Sometimeback, read an article that a Masala Dosa would cost Rs.217 in India in 2017. God only save people who need to rely on India salaries.(Of course life on H1 in US is not not that much safe compared to India).

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Kumar October 11, 2010 at 12:30 pm

Rajesh, I agree with you, it would be more useful. I will add it to my list and will post it sometime. Thanks for suggestion !

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Anand September 5, 2011 at 11:27 pm

Dear Kumar,
This is very interesting thread! Could you please share if you were ever able to gather this general information at high level for general people?

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Sg July 18, 2014 at 9:10 pm

@Rajesh- Go to numbeo – decent updates on various expense heads

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