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How would they accumulate savings if they're living below poverty level conditions? I'd guess lots of them living in very cramped shared living spaces, but even

by sofixa 2y ago

How would they accumulate savings if they're living below poverty level conditions? I'd guess lots of them living in very cramped shared living spaces, but even then?

vishnugupta 2y ago
> I'd guess lots of them living in very cramped shared living spaces Yes, this primarily + no eating outside, no car, entertainment, no family expenses etc., To answer larger question USD-INR difference is how they make most money. Wages in India are so low that even 1/5th of US wage is near top 5-10% in India. For similar reasons lot of Indians move to Dubai and Gulf region to build a decent wealth in 4-5 years. I think India ranks near the top w.r.t. inward remittance [1], ~$125B in 2023. Fun story; my manager at FAANG told me how it's common to open a head count in the US and close it soon citing not being able to hire and open 4-6 heads counts in India for the same budget. That should give you some idea about wage and currency disparity. [1] https://static.pib.gov.in/WriteReadData/specificdocs/documents/2023/dec/doc20231219290501.pdf https://static.pib.gov.in/WriteReadData/specificdocs/documen...
Delphiza 2y ago
I don't know how they do it in the US, but in the UK it works like this: * Rent a house near the office that the contract is in. Transport costs are zero because staff can walk to the office. * Put 5-8 people in the house. So rent is 1/5th of what it would be for the locals * Arrange communal food where someone cooks a meal for everyone, so food costs are significantly reduced. * House is fully furnished. Including everything in the kitchen, TVs, etc. So there is no need to go and buy 'stuff'. * It gets a bit exploitative, but heating costs can also be drastically (and uncomfortably) reduced. Given the right assistance (housing, food, etc) and being prepared to have a miserable time (not going out, no travel to big cities, no weekend breaks, bland food, crowded living) it is possible to live frugally. This gives significant local competitiveness while being able to save in a home currency.

by sofixa 2y ago

How would they accumulate savings if they're living below poverty level conditions? I'd guess lots of them living in very cramped shared living spaces, but even then?

vishnugupta 2y ago

> I'd guess lots of them living in very cramped shared living spaces Yes, this primarily + no eating outside, no car, entertainment, no family expenses etc., To answer larger question USD-INR difference is how they make most money. Wages in India are so low that even 1/5th of US wage is near top 5-10% in India. For similar reasons lot of Indians move to Dubai and Gulf region to build a decent wealth in 4-5 years. I think India ranks near the top w.r.t. inward remittance [1], ~$125B in 2023. Fun story; my manager at FAANG told me how it's common to open a head count in the US and close it soon citing not being able to hire and open 4-6 heads counts in India for the same budget. That should give you some idea about wage and currency disparity. [1] https://static.pib.gov.in/WriteReadData/specificdocs/documents/2023/dec/doc20231219290501.pdf https://static.pib.gov.in/WriteReadData/specificdocs/documen...

Delphiza 2y ago

I don't know how they do it in the US, but in the UK it works like this: * Rent a house near the office that the contract is in. Transport costs are zero because staff can walk to the office. * Put 5-8 people in the house. So rent is 1/5th of what it would be for the locals * Arrange communal food where someone cooks a meal for everyone, so food costs are significantly reduced. * House is fully furnished. Including everything in the kitchen, TVs, etc. So there is no need to go and buy 'stuff'. * It gets a bit exploitative, but heating costs can also be drastically (and uncomfortably) reduced. Given the right assistance (housing, food, etc) and being prepared to have a miserable time (not going out, no travel to big cities, no weekend breaks, bland food, crowded living) it is possible to live frugally. This gives significant local competitiveness while being able to save in a home currency.