Initial Expenses in India --- Once you get here

Initial Expenses in India (Start up Costs)

This is a topic that needs a good amount of planning. The costs will vary depending on whether you shipped stuff to India or decided to buy everything from scratch.

The initial items you will have to buy in India include the following 

1. Car  (Budget 3 - 5 lakhs if buying used)

I bought a used Honda City Automatic. In Chennai i found JAIN CAR SHOPPE to be the best. No pressure sales and they seemed honest ( i have had the car for almost 2 yrs so far so good)

 There seems to be an expectation attached to a person returning to India from abroad ... everyone wants you to live up to a standard they have set for you. 

In India social expectations are more ... bigger is always better. Simple way out don't play that game. 

Another thing to note. PETROL VS DIESEL 

Petrol costs Rs 75/Litre , A sedan with AC running will give you 8- 12 KM/LTR. If you drive more than 3000 KM a month DIESEL will be a better option

Diesel costs Rs .54 but the cars are about a 1.5 - 2 Lakhs more expensive. Used Diesel cars go for a premium. Buy a diesel only if you plan to drive more than 100+ KMs a day.

Car Insurance: This will cost anywhere from Rs. 8000 - Rs. 12000/ year depending on the make and model

2. Fridge (Rs 45,000 - Rs 55,000 depending on size)

If you have kids you will be need at least a decent size fridge  (at least 450+ liters)

We bought the SAMSUNG 470 Liters. It is good enough but still not enough if you want to store a couple of days worth of stuff.

3. Washing Machine (45,000 - 50,000 for front loading)

Top loading washing machines are cheap (you can find ones from Rs 18000 - ). The size also matters (measured in Kgs. 5Kg + will be good for a family of 4)

Top loading --- Uses more water but less expensive

Front Loading --- uses 1/3 water but more expensive 

We got the SAMSUNG front loading with built in inverter. LG is a good option too. IFB Bosch is another.

4. Microwave and Oven  (Rs 20,000 - Rs 25,000 for both at the most)

Again depending on the size you can find both for the above price. There are modular kitchens with both of them in the same unit (like in the US)

5. Kids School (Depending on the school budget anywhere from Rs 50,000 - Rs 2,00,000)

I put my kids in a medium tier school (not really an international school but a school that follows IGSCE Syllabus (APL GLOBAL in Chennai)

The main reason was ADMISSIONS, all the other regular schools wanted me in India during may and their admissions process seems to be tougher than IIT's. 

I paid close to Rs 2,00,000+  for my 2 kids for the whole year. 

This includes

1) Admission fees (new term for donations)

2) Fees for a 3 semesters

3) Special fees

4) Transportation 

5) Food (school gives them snacks etc) 

Admissions is a pain the in the rear. For the popular schools in Chennai (PSBB, SBOA, PS, Vidya Mandir, Chettinad) it is almost impossible, i did not even venture. Most of these schools have low fees and rest assured your children will be another cattle head in their vast herd. Most of these schools have sections going upto M and N each with 50 students. 

This will probably a very big decision for families with Kids. One thing i learnt after years in the US is street smarts and confidence (an oft neglected trait in Indian schools and by Indian families) almost always trumps book smarts.

Update (12/25/2013):
A lot of you have asked me personally about schools. We have had a great experience so far with APL Global in Chennai. There are about 12 students in each class and lot of learning is activity based like in the US. But other than APL i have heard good things about Shishya and Chettinad. 

6. Furniture (Rs 50,000 - Rs 2,50,000 -- it is expensive in India) 

As i had mentioned earlier furniture is expensive in India. But if you do have to buy you can get decent furniture at LIFESTYLE, @HOME (They are a chain )

http://www.homecentrestores.com/
http://www.at-home.co.in/
http://damroindia.com/
http://www.zuari-furniture.com/
http://www.woodpeckerfurniture.com/

Sale:  Lifestyle and @Home have sales in JAN and AUG, you really get good deals

Dinning table (180 X 100 cms) seats 6 --- Rs 30,000 -- Rs 60,000
Entertainment Center - Rs 10,000 - Rs 40,000
Study table  ---- Rs 9000 - Rs 30,000
Sofas (good ones) --- Rs 60,000 - Rs 2,00,000 (Leather)
Beds (decent ones) --- Rs 25,000 - Rs 50,000
Mattresses ---- Rs 8000 - Rs 20,000

7. Home remodeling or Rental (Rs 2,00,000 - Rs 3,00,000)

If renting be prepared to pay an advance of at least 10 months (so if rent is Rs 25,000 you will need Rs 2.5 Lakhs)

If you have a home already you might need renovations or remodeling ( in my experience toilets usually need some work (new tiles or new toilets) ). Budget some money for that as well. 

8. Cable TV, Internet, Cell Phone etc   (Rs 10,000 - Rs 15,000)

You will need to budget some money for these (the numbers may be on the high side)

Cable TV - About Rs 11,000/Year  (for DVR + All Channels)  -- You can pay upfront or monthly
Internet - Rs 2000/month (if you get 40 GB and 4 MBPS connection)
Cell Phone - Depends on your usage but Rs 1500 avg

9. Other Misc Household stuff (Rs 2,00,000 - 3,00,000)

There are other expenses that may vary case to case.  Somehow the feeling is that NRI's are loaded, people will try to extract a premium so don't get carried away.

10. Medical + life Insurance

Look to spend around Rs. 30,000 in premiums for these 2.

11. Domestic Help (Maid, Driver etc)

If you plan to hire a driver (good drivers are in demand)

Driver: ----Rs 10,000 - 12,000
Maid: Cleaning and Washing dishes  ---- Rs 1500 - Rs 1700

I think overall having Rs 15 lakhs to Rs 20 lakhs will be a good cushion (Close to $30,000 - $40,000)