Cost of Living Comparison: Why Hyderabad Continues to Attract GCC Investments in 2025
- Global Capability Center
- 3 days ago
- 2 min read
As companies reassess their footprint in India, cost-effectiveness, scalability, and regional access are top priorities. While Tier-1 cities like Mumbai and Bangalore remain strongholds, emerging hubs like Hyderabad are gaining momentum due to their balanced operational costs — without compromising on talent or infrastructure.
In this post, we break down the latest cost of living data (April 2025, sourced from Numbeo) across major GCC-active cities in India, including rent indexes and composite affordability.
📍 Cost of Living + Rent Index (April 2025)
City | Cost of Living Index | Rent Index | Total Index (Cost + Rent) |
Hyderabad | 21.8 | 6.5 | 15.1 |
Mumbai | 25.9 | 18.5 | 22.7 |
Bangalore | 22.7 | 8.8 | 16.7 |
Chennai | 21.2 | 5.0 | 14.1 |
Pune | 22.9 | 6.9 | 15.9 |
Ahmedabad | 21.5 | 4.5 | 14.0 |
Delhi | 22.3 | 6.9 | 15.6 |
Noida | 22.2 | 5.5 | 14.9 |
Gurgaon | 25.1 | 9.0 | 18.1 |
Source: Numbeo, April 2025 | Index values benchmarked against New York City (Index = 100)
💡 Key Takeaways for GCC Strategy:
✅ Hyderabad stands out
With a Total Index of just 15.1, Hyderabad is not only more affordable than Mumbai and Bangalore but also offers cost parity with newer hubs like Pune and Noida — while still providing Tier-1 level infrastructure and a thriving tech ecosystem.
🏙️ Tier-2 appeal is growing
Cities like Ahmedabad and Chennai offer slightly lower rent and cost of living indices, making them attractive for India Expansion Pods or distributed GCC models.
⚖️ Mumbai & Gurgaon are expensive
Their high rental costs contribute to elevated Total Index scores, making them better suited for HQ functions, R&D leadership, or client-facing roles — rather than cost-sensitive operations.
🧭 What This Means for GCC Planning
Companies looking to establish or scale delivery centers in India must evaluate not just talent but also long-term cost sustainability.
In this context:
Hyderabad offers the best of both worlds — cost and capacity
Noida, Chennai, and Pune are viable secondary cities
India Expansion Pods in cities like Coimbatore, Vizag, or Indore could further reduce costs while preserving talent access
🔍 Final Word
As the GCC landscape evolves in 2025, cost arbitrage is no longer just about offshore vs. onshore — it’s also about city vs. city within India.
Choosing the right location for your next 5, 50, or 500 FTEs could define your success trajectory for the next decade.
📩 Need help identifying where to start?
We specialize in GCC setups and India Expansion Pods — built to scale with strategy, not just headcount.
Explore More → www.globalcapcenter.com