Here's the perspective from a first world client. We contracted with Delhi dev shop and were paying about $8000 Australian dollars per month for the equivalent

Here's the perspective from a first world client. We contracted with Delhi dev shop and were paying about $8000 Australian dollars per month for the equivalent of 3 developers (mix of backend devs full time, and on call front end dev, designer, tester) I think our junior dev was charged out at $1300 per month so if using standard agency markup of 100% her salary would've been around $650 per month (~26000 rupees per month). The manager was also always complaining that new recruits kept increasing their demands each year. So it's strange that there's such a difference in salaries between 2 cities so close by. If it was true then I'd expect programmers to move to Delhi.