For most Indians, the United States is associated with high living expenses. The cost of rent in major American cities can be staggering, the cost of healthcare is high, and even a casual dinner out can be much more expensive than it would be in Mumbai or Delhi. But if one were to compare the cost of living in general and focus on particular consumer segments, the cost differential becomes more interesting.
Because of differences in import duties, taxation, manufacturing, and retail discount culture, among other factors, some products are generally cheaper in the US than they are in India, even after adjusting for the dollar-rupee ratio. While this doesn’t mean the US is an inexpensive country overall, it does explain why travellers and students frequently shop for certain items before returning home.
Electronics remain the most consistent example of products that are frequently cheaper in the US than in India. Take premium smartphones from companies like Apple Inc. for example. A flagship iPhone model often launches at a lower base price in the US compared to India. Once converted into rupees, the US retail tag is still usually significantly cheaper than the Indian Maximum Retail Price (MRP). The difference becomes even more pronounced during American sale seasons or student discount periods. But why, you ask? You see, many high-end electronics are imported into India and that attract customs duties, meaning, extra expenses. Also, the Goods and Services Tax further increases the final retail price.But the same in the US market is cheaper because they benefit from larger scale demand, intense retail competition, and frequent discount events such as Black Friday.The same trend applies to laptops and gaming machines from popular brands. For tech enthusiasts, students, and professionals, purchasing electronics in the US can lead to significant cost savings.
Fashion enthusiasts, this tip is specifically for you. Fashion brands around the world tend to be marketed as high-end lifestyle brands in India, but in the US, they tend to be more mainstream brands. Several big companies typically sell their products at lower prices in the US compared to India. This is mainly because these brands are mostly headquartered or heavily distributed in the US, they produce for a massive domestic market, outlet malls and factory stores offer year-round discounts, and seasonal clearance sales are common and aggressive. However, in India, these are considered ‘aspirational imports’. Although many products are made in Asia, pricing, import costs, and positioning the product as premium increase the final retail price. It is not unusual to see a pair of jeans or sneakers costing 20-40% less in the US, especially during sales.
Cars, especially used ones, are relatively cheaper in the US compared to India. The primary reason is that the US has a massive domestic car manufacturing industry, a high rate of car ownership turnover, and a well-organized resale market. This leads to a large and competitive second-hand market. Cars depreciate rapidly in the US, which means that they tend to lose value quickly, making second-hand cars relatively cheaper. But in India, cars are prone to high import duties (for completely imported cars), road taxes, registration fees, and insurance costs. Even if it is a domestically produced car, it may have a higher relative price due to taxation systems. Moreover, the second-hand car market, although growing, is not as large as the US market.
Books, especially academic ones, may also be cheaper in the US in some scenarios. The US publishing industry is very large. Online marketplaces and second-hand platforms make used textbooks widely available at discounted rates. In India, imported academic books, especially specialised university-level material, can be expensive due to smaller distribution volumes and import costs. Although Indian editions are sometimes available at lower prices, not every title has a low-cost local version. Students studying abroad often notice that buying textbooks second-hand in the US can be significantly more economical than purchasing new imported copies in India.
The cost-effective factor for these categories essentially translates to the following structural differences: import duties being lower for local products since many brands are either headquartered in or mainly distributed from the US, huge consumer base, cutthroat retail competition, common discount mentality especially around big shopping occasions, and most importantly, higher purchasing power.
Though electronics, clothing, and some consumer products are more affordable in the US, basic necessities like housing, healthcare, eating out, child care, and other utilities remain significantly more expensive compared to India.India is still much cheaper when it comes to the cost of living. It is, however, essential to note that the benefit of living in the US is only applicable to certain categories of products, especially those that are branded and technology-based.Therefore, the notion that “everything is expensive in the US” is not entirely correct. Yes, the cost of living is higher in the US, but some products, especially electronics, fashion, cars, and books, are actually cheaper in the US due to lower duties, mass production, and competitive pricing.
Source credit goes to TOI
https://www.msn.com/en-in/news/india/4-things-that-are-surprisingly-cheaper-in-the-usa-than-india-and-why/ar-AA1WUhfo?ocid=msedgdhp&pc=U531&cvid=699d185196f04b2ab7612d6fc81f7aba&ei=38