Globally, Mumbai has climbed 11 places to be ranked 136th, while Delhi has risen 4 spots to 164th. However, Chennai has dropped five spots to 189, Bengaluru has dropped six spots to 195, Hyderabad saw no change at 202, Pune jumped eight spots to 205, and Kolkata rose four spots to 207.
In 2023, Mumbai dropped 20 places to rank 147. It has since rebounded to rank 136th. Evolving economic factors have increased Mumbai’s cost-of-living, the report added. Delhi moved from 169 in 2023 to 164, Kolkata from 211 to 207, Pune from 215 to 205. Chennai dropped from 184 to 189, Bengaluru from 189 to 195, and Hyderabad was stable at 202. The fluctuations underscore the dynamic nature of India’s urban economies and their responsiveness to global and local economic forces, the report added.
Mumbai is the 21st most expensive city in Asia for expatriates, while Delhi holds the 30th position among the surveyed locations in the region.
"In the face of global economic challenges, India has remained largely resilient in our 2024 Cost of Living Survey. Despite Mumbai's rise in rankings, the overall affordability of Indian cities remains a key advantage for multinational organizations or Indian companies looking to attract global talent. Our thriving economy, fuelled by domestic demand and a robust services sector, offers a stable environment for global talent. As we navigate rising global housing costs and inflation, India's growth story and improving living standards position us as an attractive destination for international assignments,” said Rahul Sharma, India Mobility Leader at Mercer.
When it comes to Indian cities, personal care products including cosmetics, toiletries, and beauty products are the most expensive in Mumbai, followed by Chennai. They are least expensive in Kolkata. Energy and utility costs are also the most expensive in Mumbai, followed by Pune. Transportation costs, including automobiles, auto parts and running costs, are the most expensive in Mumbai too, followed by Bengaluru.
Housing rentals saw the highest increase in Delhi with 12-15 per cent for expats, while Mumbai witnessed an increase of 6-8 per cent, Bengaluru 3-6 per cent, and Pune, Hyderabad, and Chennai 2-4 percent.
Milk and dairy products, bread products, beverages, oils, fruits and vegetables were the most economical in Kolkata, followed by Pune, while alcohol and tobacco items were least expensive in Delhi.
Housing costs, the report added, is a critical factor when it comes to attracting and retaining top talent. Housing expenses do not only strain an organization’s budget, it also impacts employees’ quality of life. With the global economy facing challenges such as geopolitical conflicts, and exacerbated inflation, organizations are grappling with the impact on their global talent, the Mercer report added.
Meanwhile, the Indian economy has remained resilient, compared to many major economies, and has witnessed significant growth, driven by domestic demand and a robust services sector. Factors such as employment growth, rising middle class, and overall economic growth positively impacted the cost-of-living in India, the report added.
When it comes to the cost of living globally, the top five cities saw no change in the rankings. Hong Kong retained the top spot, followed by Singapore, Zurich (Switzerland), Geneva (Switzerland), Basel (Switzerland), Bern (Switzerland), New York City (US), London (UK), Nassau (Bahamas), and Los Angeles (US).
