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Cities like Bangkok/Hanoi/Kuala Lumpur are cheaper than Mumbai/Delhi to live.
A few years ago, India was an inexpensive country. When you travelled to countries like Thailand, Vietnam etc, you always felt that: "oh wow, India is quite inexpensive".
That is NOT the case anymore.
So what changed? Two things:-
1) The cost of Real Estate has gone up massively.
Price for almost everything is tied to Real Estate (eg. your Burger costs more) because some shop is paying a higher rent than it used to.
Why? because property prices have gone up. Due to this: the rent has gone up. Due to this: your burger prices have gone up.
Applies to school fees, retail shops etc.
2) The supply chains have improved. And, the highest bidders get access to the best quality assets.
A classic case study would be Malaysia. Here, the rent is low. But, the food prices are quite high. Why? because Singapore is next to Malaysia.
If I as a trader: have a choice to sell my goods to Singapore vs Malaysia, I will sell it to where I am getting the most money.
3) In India: we are witnessing a unique situation: due to high corruption, our Real Estate prices are crazy (for context: Mumbai beats Dubai in terms of Per Square Feet rates, this makes no sense).
And, due to improved supply chains: if you wish to consume good things, you gotta pay the same price on consumption good
Add to this: we are a high tax country-- so when you buy discretionary items eg. Cars, the cost adds up fast.
In short: there are two Indias:-
One: where 50% junta depends on food rations. For them the cost of living does not escalate much.
Two: where 20-30% junta craves for better things (better education, healthcare, cars, houses), for them India is becoming Dubai (minus tax advantages).