Keeping up with the Joneses more expensive in India?
India’s per capita income is only a fraction of USA’s per capita and yet India’s expenditure on majority discretionary items and brands are more costly or at par with US prices.
India's per capita income was $5,350 PPP in 2013 while the US per capita was recorded at $53,750 PPP in the same year.
Arnab Mishra and Rohit Kadam in a research paper published by Credit Sussie on June 21 found out that for the same set of goods, branded products are much more expensive in India than abroad.
India makes room for a number of brands in its markets but affordability becomes a problem.
The only discretionary brand which is significantly cheaper in India is Jockey, which is priced almost half its price in the US, the report stated.
Cars, electronic products, and branded apparel are also more expensive in India than in USA.
According to the report, Samsung’s 32o TV brand was found to be more expensive in India, costing almost 50% more than its price in USA.
Daily consumer products such as petrol are 74% higher in Mumbai compared with New York prices, the report stated.
Fast Moving Consumer Goods (FMCG) like biscuits, soaps and detergents are far less expensive in India than in the US.
Daily use food commodities such as milk, sugar, and chicken are 10-40% cheaper in India compared with the US.
Alcoholic beverages like Smirnoff and Budweiser are only a fraction cheaper than in the US.
Whereas cigarette brands like Marlboro are significantly cheaper amounting to nearly 50% of the US prices.
Services are extremely cheap in India compared with the US.
Cable TV amounting to below 10%, while taxi rides and household help charges also add up to the 20% mark against US prices, the report stated.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
RCB vs CSK IPL 2024 Ticket Booking Online: Where and how to buy RCB vs CSK tickets online - Check IPL Match 68 ticket price, other details
SIP Returns: How Rs 3,000, 5,000, and Rs 10,000 SIPs can help you build retirement corpus of Rs 1.06 cr, Rs 1.77 cr, and Rs 3.53 cr
Women loco pilots speak about their struggle; many men have to be informed even for 'washroom break' in a moving train
Bandhan Bank Q4 FY24 Results Preview: PAT, interest income likely to grow in almost double digits; asset quality may improve
03:38 PM IST