Financial advisor Akshat Shrivastava, who is also Founder of Wisdom Hatch, has sparked a debate on India’s cost of living for the affluent, pointing out that the country is far from inexpensive once taxes and lifestyle aspirations are factored in.
In a post on X (formerly Twitter), Shrivastava compared his recent purchase of a Toyota RAV4 in the UAE with the cost of buying the same vehicle in India. “Total cost: 109K AED or INR 25.6L (including insurance, 3-year maintenance etc). If I would have bought this car in India, my total cost would be 40 lakhs,” he wrote.
But the real pinch, he argued, comes from India’s tax burden. “To get that 40L, I would first need to pay at least 30% taxes (vs 0% tax in UAE). So my total cost would be INR 57.14L. That’s more than double the price.”
Shrivastava criticised the popular narrative that India is an inexpensive country due to purchasing power parity (PPP). “PPP data does not capture this. It is only inexpensive for a certain segment of people. If you want good things in life – good house, decent car, education for kids, safety – you have to pay a massive premium.”
Shrivastava noted that the “luxury premium” is not limited to automobiles. “Try this out for a decent house, school education, anything. Except for healthcare, most things are hyper expensive now,” he said, adding that even healthcare costs are likely to rise in the coming years.
His remarks touch on a broader sentiment among India’s aspirational middle and upper classes: while basic necessities may be affordable, the cost of achieving a “global standard lifestyle” is disproportionately high.
India’s high taxation
India’s personal income tax rates are among the highest in Asia. The top marginal rate for individuals can go up to 30% plus surcharge and cess, pushing the effective tax burden to nearly 42.7% for the wealthiest. In contrast, countries such as the UAE and Singapore offer far lower or zero personal income tax rates, making luxury goods and quality services significantly more affordable relative to post-tax income.
This disparity is a major driver behind India’s rising millionaire migration trend. According to global wealth migration reports, India now leads the world in the ratio of high-net-worth individuals (HNWIs) leaving the country relative to its wealthy population size