US woman living in India uses simple math to show why rupees offer better value than dollars
An American woman in India explained how the rupee stretches further than the dollar.
An American woman who has been living in India for the past four years has ignited an online conversation after posting a video explaining why the Indian rupee offers better domestic purchasing power than the US dollar.
Kristen Fischer took to Instagram to address a question she says she receives frequently: "Is the rupee really better than the dollar?" In her video, which has now garnered over 139k, she delves into the concept of purchasing power parity (PPP), using simple comparisons to highlight how far a rupee can stretch in India compared to a dollar in the United States.
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'Rupee buys you more here'
"Now, whenever I talk about how affordable it is to live in India, I'm always met with responses about purchasing power and how it's not a fair comparison to talk about India and the US," Fischer says in the clip. "So let's break it down."
She explains that PPP is essentially a measure of how much a currency can buy within its own economy relative to another. Since goods and services in India are significantly cheaper than in the US, the rupee, in relative terms, can buy more.
"This means that one rupee in India can buy you more than the equivalent of one dollar can in the US," she adds. "So when comparing, the Indian rupee goes further, making its purchasing power parity higher than the US dollar."
Using practical examples, Fischer illustrates the difference: "Imagine you have $10 in the US—that might get you a simple meal. But 800 rupees in India (the equivalent of $10) could buy you several meals."
‘34 haircuts in India for the price of one in the US’
In the caption accompanying her video, Fischer elaborated further: "Too many responses about purchasing power made me make this video. Rupees in India stretch further than the relative dollars do in the USA." She pointed out that while incomes are higher in the US, so are the costs.
She added another stark example: "The average cost of a haircut in India is around ₹100, while in the USA it's $40—or ₹3,400. This means you could buy 34 haircuts in India for the cost of just one in the US."
Watch the clip here:
Internet reacts with praise
The post has received widespread appreciation, with several users echoing her sentiment. One person wrote, "We never bought anything premium in US while in India we buy the best always." Another added, "A truly enlightening explanation—beautifully articulated."
Some praised her clarity: "Good. Very neatly explained. That is the purchase power of India." Others highlighted the financial strategy: "So basically earn in dollars and spend in rupees is best way to live life." One comment read, "You have better explained than many economists." Another user noted, "You always have something positive to say about India, thank you Kristen."
