When we compare salaries across countries, the numbers alone don’t tell the full story. A paycheck is not just a figure on paper; it represents access to housing, healthcare, leisure, and social prestige. Lifestyle, cost of living, and relative purchasing power matter just as much as the raw income. That is why ₹2 lakh per month in India and ₹7 lakh per month in the United States can mean very different realities, even though the numbers appear impressive in both contexts.
India: The Power of Relative Wealth
In India, the median monthly income is about ₹27,000. This figure represents the middle point of earnings across the country, meaning half of the population earns less than this amount. Against this backdrop, someone earning ₹2,00,000 per month is making 7.4 times more than the average Indian. This places them firmly in the upper echelon of society.
With such an income, access to premium housing, private healthcare, international travel, and strong savings potential becomes not just possible but routine. Even in expensive metros like Mumbai or Bangalore, where housing costs and lifestyle expenses are higher, ₹2 lakh per month ensures comfort and financial security. In cities like Kolkata or Chennai, where the cost of living is lower, this income translates into a truly luxurious lifestyle, spacious housing, domestic help, frequent dining out, and the ability to save or invest significantly.
Beyond material comforts, there is also the intangible value of social prestige. In India, earning several times more than the median income sets you apart in most circles. It allows you to provide for your family generously, participate in cultural life without financial stress, and enjoy the respect that comes with financial success.
United States: Comfort, But Not Luxury
In the United States, the median monthly income is around $3,300 (₹2.9 lakh). A salary of $8,000 (₹7 lakh) per month is 2.4 times the median. While this is respectable, it does not place someone in the same relative position as in India.
In cities like New York or Los Angeles, housing alone can consume a large portion of this income. Rent for a decent apartment can range between $3,000 and $4,000 per month, leaving less room for luxury or savings. Healthcare, childcare, and transportation costs further reduce disposable income. The result is a lifestyle that is stable and comfortable, but not extravagant.
However, in smaller cities such as Buffalo or Richmond, the same salary stretches much further. Housing costs are lower, daily expenses are more manageable, and savings become easier. In these locations, $8,000 per month can provide a lifestyle closer to what ₹2 lakh per month offers in India comfort, security, and the ability to enjoy leisure without constant financial stress.
|
India |
₹27,000 |
₹2,00,000 |
7.4× |
Upper-class lifestyle; luxury in smaller cities, comfort in metros |
|
United States |
$3,300 (₹2.9 lakh) |
$8,000 (₹7 lakh) |
2.4× |
Comfortable, but not elite; stretched in NYC/LA, better in smaller cities |
|
India (Luxury Benchmark) |
₹27,000 |
₹2,00,000 |
7.4× |
Equivalent to prestige, savings, and social status |
|
United States (Luxury Benchmark) |
$3,300 (₹2.9 lakh) |
$17,000 (₹15 lakh) |
5.1× |
Comparable to India’s relative privilege; prime housing, private schooling, strong savings |
The Key Difference: Relative Wealth
The crucial distinction lies in relative wealth. In India, earning well above the median gives you prestige, comfort, and financial security. In the US, the same multiple does not carry as much weight because the baseline lifestyle of an average American is already higher. Even those earning at or near the median income in the US enjoy reliable utilities, clean neighborhoods, consumer protections, and access to public services that are often superior to what median earners in India experience.
To replicate the relative privilege of ₹2 lakh per month in India, one would likely need ₹15 lakh per month ($17,000) in the US. At this level, you can afford prime housing, private schooling, healthcare, and still save significantly. This is the threshold where the US lifestyle begins to feel not just comfortable but elite.
Human Perspective: Comfort vs Exposure
While an average American enjoys a better baseline lifestyle than an average Indian, the relative advantage of earning well above the median is far greater in India. With ₹2 lakh per month, you can live with prestige, comfort, and financial freedom. In the US, $8,000 per month ensures stability but not extravagance, especially in high-cost metros.
Thus, if your goal is comfort, prestige, and savings, India offers more at ₹2 lakh per month. If your goal is exposure, infrastructure, and global opportunities, the US makes sense, but only at a higher threshold like ₹15 lakh per month.
Ultimately, the decision is not just about numbers. It is about what those numbers mean in context. In India, relative wealth magnifies your lifestyle dramatically. In the US, absolute wealth matters more because the baseline is already high. Choosing between the two depends on whether you value relative comfort and social prestige or global exposure and infrastructure. Both paths have merit, but the financial thresholds are very different.
