Cost of living in India: Is ₹2.5 lakh the new ₹1 lakh? Viral Bangalore founder’s claim ignites debate on cost of living in India
Think back a decade. A monthly salary of ₹1 lakh was the kind of figure people spoke of in awe. Parents proudly mentioned it to relatives. New graduates dreamed of getting there before they turned 30. It was more than just a paycheck: it was proof that he had done it.Fast forward to 2026, and that same number doesn’t have the same confidence, at least not in India’s biggest cities. Ask anyone paying rent in Bangalore, juggling school fees in Mumbai or watching grocery bills pile up month after month, and you’ll likely hear the same refrain: everything seems more expensive than before.That daily frustration spilled over onto social media this week after Bengaluru entrepreneur and Medial founder Niket Raj Dwivedi wrote to X that “₹2.5 lakh a month is the new ₹1 lakh,” adding that the comparison was especially true for cities like Bengaluru and Mumbai. His comment quickly turned into a heated debate. Some called it out of touch in a country where earning ₹1,000 a month is still out of reach for most workers. Others argued that he had simply said aloud what many urban professionals had quietly felt for years.The discussion, however, is about much more than a viral post. It reflects a growing unease about how inflation, rising housing costs and changing lifestyles are redrawing the boundaries of what financial security actually looks like in urban India.
One message, hundreds of opinions
Dwivedi’s post was brief, but the reactions were anything but. Within hours, people from different walks of life had joined the conversation. Some agreed almost instantly, saying they could relate to the pressure of managing expenses in cities like Bengaluru and Mumbai. Others felt the comparison ignored a simple reality: for millions of Indians, earning even ₹1 lakh a month remains an aspiration.One X user described the statement as “truly shocking how far removed from reality some people are”, arguing that such statements overlook the financial struggles of most households.Another user looked at it from a completely different angle. According to them, inflation, lifestyle changes and an uncertain job market have steadily reduced the value of a six-figure salary. “₹1 lakh felt rich in 2015. ₹2.5 lakh felt like survival in 2026,” the user wrote.The sharply divided responses revealed that the argument was not really about a salary figure. It was about where people live, how they live and what they expect their income to cover.When rent eats up your salary. Perhaps the strongest support for Dwivedi’s argument came from people pointing to housing costs.An X account noted that renting a three-bedroom apartment in neighborhoods like Bellandur, HSR Layout or Koramangala in Bengaluru can cost between ₹80,000 and ₹1 lakh per month. Once rent consumes such a large portion of income, the remaining salary must cover transportation, groceries, utilities, health care, child care, insurance, taxes, and savings.For many professionals, this arithmetic feels increasingly difficult. Another user simply commented: “Yes, inflation keeps raising the bar for everyone.”That sentiment may explain why salary conversations sound so different today than they did a decade ago. The focus is no longer just on how much someone earns, but on how much purchasing power the income provides.
Inflation is only part of the story
At the same time, several users argued that inflation alone cannot explain the changing perception of what is considered a comfortable salary.Financial experts have often pointed out that higher income is often accompanied by higher spending. As the career progresses, people tend to move into bigger homes, dine out more often, travel more often, and spend more on comfort. Economists describe this as lifestyle inflation or lifestyle variation.That’s not to say that concerns about rising costs are unfounded. Rather, it suggests that current spending patterns are shaped by both need and changing aspirations.The debate over X reflected exactly this tension. While some users focused on the increased cost of essential items, others argued that what is now described as “survival” may still represent a relatively privileged urban lifestyle.
A metro problem, not India?
Some participants in the discussion tried to unite the two points of view. One user acknowledged that Dwivedi’s statement may sound unrealistic to most Indians, but added that the cost of living in cities like Delhi, Mumbai and Bangalore have risen dramatically over the years.The user even remarked that dining in Tokyo can sometimes seem cheaper than dining in Delhi, using the comparison to highlight how expensive metropolitan India has become.Whether everyone agrees with this comparison is another matter. But it reflects a growing perception among many urban professionals that their salaries no longer buy the lifestyle they once expected.
The real takeaway
The debate sparked by Dwivedi’s post is unlikely to end soon because it touches on something deeply personal: people’s relationship with money.For someone living in a tier-II city with modest housing costs, ₹1 lakh per month can still provide a very comfortable life. For a family paying high rent, school fees and commuting expenses in Bangalore or Mumbai, even a salary two or three times higher may not feel as secure as before.Maybe that’s why the post resonated so much. It wasn’t just about whether ₹2.5 lakh is the new ₹1 lakh. It was about how quickly expectations, spending and definitions of financial comfort are changing and how these changes look very different depending on which part of India you call home. It raises the broader question of whether employers are taking these issues into account?
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