According to the Worldwide Cost of Living survey (WCOL) conducted by EIU, the world’s cheapest city to live in is Karachi – capital of Pakistan. These calculations are based upon taking New York as the base city for which the index is set at 100. Karachi’s score is 46. Next cheapest city is Mumbai – the financial capital of India – which scored 52 on the index. Tehran in Iran gets a score of 54 making it the 3rd cheapest city to live in.

India’s official capital New Delhi scored 56 points on the index. It can be noted that out of the first 4 cheapest cities, 2 are from India. It is probably the reason for labor outsourcing. We can also notice that cities from Middle East and Asia are among the end-rankings in the WCOL.