Friend gets Rs 80 lakh in US salary? You can live it up in India for less

Researcher's viral LinkedIn post explains the concept of purchasing power parity

The distant cousin succeeding in his American dream is the dinner table talk of Indian families. The conservation could be something like: “My cousin in the US makes Rs 80 lakh a year. I wish I earned that much.”

 

Delhi-based researcher Shubham Chakraborty has challenged such assumptions in a Linkedin post that has gone viral. “Next time your friend in the US says he earns Rs 80 lakh, remind them that you only need Rs 23 lakh in India to live the same lifestyle,” Chakraborty wrote on the professional networking website.

 

The statement isn’t just casual social media wisdom, but grounded in an economic concept called purchasing power parity (PPP).

 

 

It compares the cost of living and tells you how much income you’d need in one country to afford the same standard of living in another.

 

Rs 20.38 in India is equal to one international dollar, according to International Monetary Fund’s data for this year,

 

In the US, $1 = $1 international dollar

 

So, if you're earning Rs 23 lakh in India, that's roughly equal to $112,850 in real PPP terms. It means your rupee buys a lot more here than the same number of dollars does in the US.

 

Breaking down Rs 80 lakh

 

Chakraborty illustrates his point with relatable expenses by attaching a screenshot of another post by Nithin Kaushik, a chartered accountant.

 

• A regular restaurant meal: Rs 300 in India vs Rs 1,700 in the US 
• Monthly internet: Rs 700 in India vs Rs 6,000 in the US 
• Rent for a standard 2BHK: Rs 50,000 in India vs Rs 1.6 lakh in the US

 

The costs show why headline salaries can be misleading without factoring in the cost of living.

 

But money isn’t everything

PPP isn’t the only factor though, according to Chakraborty’s post. The US offers better infrastructure, public services, and career exposure.

 

Quality of life, social benefits, and long-term prospects can vary

 

Still, if you’re comparing offers across borders or just making peace with your current paycheck, PPP gives much-needed context.