Compared to Los Angeles, where I live, it looks like most things are about 1/6 the cost, including meals, rent, and groceries. I could rent an apartment in Bangalore's city center for less than I pay on Cable TV here. So it makes sense that salaries would be much lower in Bangalore than they are here.
True, but there are also things that don't get cheaper.
One good example is hosting. Linode/Rackspace monthly charges can eat your lunch.
Another is electronic equipment. Computers, smartphones and all other gadgets are not a tad bit cheaper -- they cost the same, and sometimes even more than they do in other countries.
Same applies to cars. A Camry will cost you nearly double its sticker price due to 104% tax on foreign-made cars. Indian-made cars cost $10'000 and up -- for nothing that even comes close to comfort and cruising of a Toyota/Nissan engine.
I know, I know; these are not big points -- what really upsets me though is -- being paid peanuts when people doing the exact same thing as you are making 10 or even 15 times more in other countries. I know people in Google, Zynga and other places all making $140k or more (in the U.S.)