This LinkedIn Post Just Ended The Dollar Vs Rupee Lifestyle Debate
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Shubham Chakraborty questioned the hype around NRIs flaunting big salaries abroad.
Think you need to earn dollars to live the good life? Maybe not. Shubham Chakraborty, a Delhi-based researcher, argues that an annual income of Rs 23 lakhs in India can deliver a lifestyle on par with someone earning Rs 80 lakhs in the US. In a thought-provoking post that's gaining traction online, he calls out the obsession with foreign salaries, urging Indian professionals to consider context, like cost of living, taxation, and local comforts, before glorifying the NRI paycheck.
'Next time your cousin/friend who has settled in the US says he makes Rs 80 Lakhs a year, tell them you only need Rs 23 Lakhs to match their lifestyle in India," he shared his perspective on LinkedIn, spotlighting the impact of Purchasing Power Parity (PPP) in understanding real income and lifestyle value across countries.
According to International Monetary Fund (IMF) data, the PPP ratio between India and the US is over 3:1, lending credibility to Chakraborty's argument. To support his point, he provided direct cost comparisons: a meal that costs Rs 300 in India might be Rs 1,700 in the US; internet bills rise from Rs 700 to Rs 6,000; and rent for a comparable home jumps from Rs 50,000 to Rs 1.6 lakh. Chakraborty also recognised that PPP has its limits.
'Developed countries often have better public services, technology, and opportunities. They may also offer better social security," he also mentioned in his now-viral post.
Meanwhile, economists reportedly agree that PPP isn't a perfect measure. It assumes that goods and services are of equal quality across countries, which often isn't the case.
Furthermore, healthcare, education, and legal protections are said to differ widely from country to country. On top of that, personal factors—like where you live or your family's needs—can greatly impact both the cost and quality of life.
Additionally, PPP also has its flaws. It's reportedly based on large surveys that might be less accurate in developing countries and often overlook details like local services or infrastructure quality. Still, Chakraborty's post resonated with many, sparking fresh conversations about what 'earning more" truly means when viewed through a global lens.
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