Key Takeaways
- India’s economy prioritizes the affordability of essentials over luxury, making luxury goods unaffordable for many.
- High import duties on luxury items exacerbate the problem, making them even more expensive.
- Low salaries and high taxes make it difficult for Indians to afford luxury goods.
- The government needs to rethink its economic policies to make luxury more accessible to Indians.
A recent viral post by an X user Ray (@sde_ray) has sparked a heated debate about the state of luxury in India. Sharing that his brother purchased a Land Rover just two years after completing his master’s in Europe, Ray argued that India’s economic system makes it nearly impossible for the average citizen to achieve similar milestones.
“In India you can work hard for years, even get into big tech companies still it’s not easy to afford luxury cars, but in Europe almost everyone drives expensive cars” Ray wrote. He pointed to high taxes and import duties as the culprits, noting that luxury goods often cost 2x to 100x more in India.
My brother purchased Land Rover, just 2 years after completing his masters from Europe.
In India you can work hard for years, even get into big tech companies still it’s not easy to afford luxury cars, but in Europe almost everyone drives expensive cars.
India economy is… pic.twitter.com/1yPpY52zTw
— Ray (@sde_ray) December 6, 2024
This has led Ray to conclude that India’s economy is designed to keep people poor, with low salaries and high taxes making luxury goods unaffordable for many. Only daily needed items are cheap in India. The post, which has gained over 519K views, has resonated with many Indians who feels the same that despite their hard work, luxury remains a distant dream just like Ray.
The Harsh Reality of Luxury in India
Ray’s follow-up posts highlight the harsh reality that even basic human rights like clean air and fresh water are a luxury in India. He also believes that life, air, and quality of life in Europe are far better than in India. He agrees that running a business in India is necessary to become rich, as a job would only keep one middle-class.
User Reactions: Agreements and Counterpoints
Many users have commented on Ray’s post, sharing their own experiences and insights. The comments section reflects a mix of agreement and counter perspectives:
- Support for Ray’s View:
- Shalini Tewari (@maybeshalinii) agreed, saying:
“The Indian system prioritizes the affordability of essentials over luxury, but it does feel unfair when luxury becomes unattainable for many.”
- Adhya (@psych_enigma) pointed out the sky-high import duties and lack of quality local alternatives:
“Import duties are bonkers in India, and there’s little initiative to produce high-quality items indigenously.”
- Shalini Tewari (@maybeshalinii) agreed, saying:
- Counterpoints Highlight India’s Conveniences:
Some users acknowledged that while luxury goods are cheaper in Europe, India offers unique conveniences like:- Affordable Domestic Help
- Home Grocery Deliveries
- Lower Daily Costs
However, others bluntly suggested Ray to move to Europe if he wants luxury.
Why Are Luxury Goods So Expensive in India?
The answer lies in India’s economic policies, which prioritize the affordability of essentials over luxury. While this may seem like a noble goal, it has created a system where luxury goods are out of reach for many. The high import duties on luxury items only exacerbate the problem, making them even more expensive.
According to the World Bank, India’s import duties on luxury goods are among the highest in the world. For example, the import duty on luxury cars can range from 100% to 200%, making them unaffordable for many Indians. Similarly, the import duty on high-end electronics can range from 20% to 30%, making them more expensive than in other countries.
Example:
“A luxury car like the BMW X5 costs around ₹1 crore in India due to import duties, while the same car is priced at just €60,000 (₹55 lakh) in Europe.”
Is Change Needed?
This scenario raises important questions about the state of luxury in India. Why is it that hard work and a good education are not enough to afford a luxury car or a comfortable life? Why can’t hardworking Indians achieve the same milestones just like Europe? Are India’s high taxes and low salaries creating a cycle that keeps luxury goods unaffordable? And what can be done to make luxury more accessible to Indians?
To make luxury more accessible to Indians, the government needs to rethink its economic policies. This could involve reducing import duties on luxury items, encouraging indigenous production of high-quality luxury goods, and increasing salaries to match the cost of living.
Conclusion
The debate sparked by Ray’s viral post highlights the complexities of India’s economy and the challenges of making luxury goods accessible to many Indians. While India’s economic policies have helped prioritize the affordability of essentials, they have also created a system where luxury goods are out of reach for many. If policymakers aim for a more equitable economy, rethinking these policies could bridge the gap and make dreams like owning a luxury car more accessible for hardworking Indians.
What do you think? Share your thoughts in the comments section below.