Are you wondering how Indian rupee (RS) and US dollar (USD)compare in terms of cost of services such as locksmith service? Dollar is the most powerful currency of the world. The movement of dollar determines the course of the global economy. You can all it the currency of the world.
When we desire to compare the cost of a service in the US and India, we need to understand the ground economy of the two countries. US is the most developed country whereas India is a developing country. We also need to understand the difference in purchasing power parity of the two nations.
In India, one meal in the capital city of Delhi costs you Rs 50 on the streets. The same will cost more in terms of dollars. So, services are cheaper in India that what you pay in the US.
A locksmith in India will charge you Rs 100-250 for making a new key to a simple lock. It will cost you $35-100 in San Diego, US. When converted in Indian rupees, you pay Rs 2000-6000 for San Diego locksmith service. Why this huge difference? The answer lies in the cost of living. In India, the cost of living is much lower than that in the US. In our example city of San Diego, the average cost of living is much higher. One can survive in Delhi for Rs 15,000, though with a very poor living standard. In the US, you cannot think of doing so.
Another major difference between a locksmith in India and his counterpart in the US is the way of operation. Most Indian locksmiths operate as road-side vendors with makeshift bases on the streets. There is no regulations or licence required for locksmiths in India. It is not the case in the US. One needs a proper license which is renewed at regular intervals. You also need insurance for high-value services. One also needs a proper shop establishment, which means a hefty rental bill.
So you can see how the INR and US Dollar are not the only reasons for pricing of services in India and the US. A service in India is much cheaper even if you pay in the US dollar. It’s not just the currency, but the economy and the cost of living which detrmines the price you pay for availing a service in one country.