Cost of Living in India: Is ₹2.5 lakh the new ₹1 lakh? Viral Bengaluru’s founder’s claim sparks a debate about the cost of living in India
Think back to ten years ago. A monthly salary of ₹ 1 lakh was the kind of people who spoke admiringly. Parents tell their relatives proudly. The graduates wished they had arrived before the age of 30. It was more than just a paycheck—it was proof that you made it.Fast forward to 2026, and the same number does not have the same confidence, not even in India’s major cities. Ask anyone who pays rent in Bengaluru, pays bills in Mumbai or watches grocery bills rise month after month, and you’ll probably hear the same thing: everything is more expensive than before.The daily frustration reached social media this week after Bengaluru businessman and Medial founder Niket Raj Dwivedi posted on X that “$2.5 lakh a month is the new ₹1 lakh,” adding that the comparison was especially true for cities like Bengaluru and Mumbai. His words turned into a heated argument. Some called it ineffective in a country where earning R1 lakh a month is still unaffordable for many workers. Others said that he just said out loud what many rural experts have been hearing silently for years.The discussion, however, is very close to a single virus. It reflects growing instability as inflation, housing affordability and lifestyle changes are reshaping the boundaries of what financial security looks like in urban India.
One post, hundreds of ideas
Dwivedi’s script was short, but his performance was different. Within hours, people from different cultures had started talking to them. Others immediately agreed, saying they could be affected by the pressure to manage costs in cities like Bengaluru and Mumbai. Others felt that the comparison ignored a simple truth: for millions of Indians, earning R1 lakh a month is still an aspiration.One X user described the statement as “amazing how out of touch some people are with reality,” arguing that such statements ignore the financial struggles many families face.However one user saw it differently. According to them, inflation, lifestyle changes, and uncertainty in the labor market have gradually reduced the cost of six-person wages. “₹1 lakh felt rich in 2015. ₹2.5 lakh lived in 2026,” the user wrote.The widely divided responses indicated that the debate was not about a single salary. It was about where people lived, their lifestyle and what they expected to earn from their money.When rent eats up your salary. Perhaps the strongest support for Dwivedi’s argument came from people pointing to the cost of housing.One X article reported that renting a three-bedroom apartment in a neighborhood like Bellandur, HSR Layout or Koramangala in Bengaluru can cost anywhere between ₹80,000 and ₹1 lakh per month. When the rent costs that much, the remaining wages have to pay for transportation, food, utilities, medical care, children’s education, insurance, taxes and fees.For many professionals, that math is too complicated. One user simply replied, “Yes, inflation is getting worse for everyone.”That perspective may explain why conversations about pay today sound so different than they did a decade ago. The goal is not to look at the amount of money an individual earns, but the amount of purchasing power that income provides.
Inflation is only part of the story
At the same time, several users said that the drop in prices alone cannot explain the change in the perception of what counts as a good salary.Economists often say that more money means more money. As jobs progress, people tend to move into larger homes, eat out more often, travel more often, and spend more money. Economists refer to this as the rising standard of living or the changing standard of living.This is not to say that concerns about rising costs are unfounded. Instead, it shows that today’s spending is in line with demand and change.The discussion on X reflects exactly that conflict. While some users were concerned about the high cost of basic necessities, others argued that what is now described as “survival” could still represent urban life.
Metro problem, not India’s problem?
Some of the interviewees tried to reconcile the two views. Another user admitted that Dwivedi’s claims may sound like nonsense to many Indians, but added that shopping costs in cities such as Delhi, Mumbai, and Bengaluru have risen dramatically over the years.The user noted that dining out in Tokyo is sometimes cheaper than dining out in Delhi, using the comparison to highlight how expensive the Indian city has become.Whether everyone agrees with the comparison is another matter. But it reflects a growing feeling among many urban professionals that their salaries no longer buy the lifestyle they expect.
A real container
The debate sparked by Dwivedi’s post is unlikely to end soon because it touches on something deeper: the relationship between people and money.For those living in a Tier-II city with affordable housing, ₹ 1 lakh per month can still lead to a very comfortable life. A family that pays high rent, school fees, and travel expenses in Bengaluru or Mumbai, even double or triple the salary may not feel as secure as before.Maybe that’s why this post resonated so much. It didn’t just say ₹2.5 lakh is the new ₹1 lakh. It was about how expectations, costs, and definitions of financial comfort are changing rapidly and how those changes look different depending on the part of India you call home. It raises the big question whether these questions are considered by employers?
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