India's financial capital Mumbai is the most expensive city in the country.
Mercer's annual Cost of Living report stated rapid economic growth and a stable currency against the US dollar were the main reasons for Indian cities being expensive for expats to live in.
The report said Mumbai was the 57th most expensive city in the world, followed by New Delhi at 99 and Chennai at 135.
Mumbai jumped 25 spots, while New Delhi and Chennai rose by 31 and 23 spots respectively.
To put things into perspective, Mumbai and New Delhi are more expensive cities than Toronto, Vancouver, Frankfurt and Berlin.
Pakistan's financial hub Karachi stood at 201, one of the least expensive cities in the region.
The most expensive cities in the world were mainly in Asia, Europe and Africa.
Quite a few African cities are in the list due to high cost of living for expatriates.
Luanda, capital of Angola, is the most expensive city in the world, the annual list suggested, followed by Hong Kong, Tokyo, Zurich and Singapore.
New York City is the ninth most expensive city in the world, while London was 30th-ranked.