New Delhi, Mar 15: Three Indian metros find place in the list of top 10 cheapest cities in the world, released by the Economist Intelligence Unit. On the other hand, Singapore, another top Asian city, has been ranked as the most expensive by the EIU report.

The ranking is based upon the cost of living index of 133 countries surveyed by the EIU. While much of Western Europe has occupied the top spot, the worst performers were the South Asian cities, which are plagued by the menace of unemployment, low wages, widening income inequality and lack of infrastructural development.

The report explicitly red-flags the looming crisis in India. Though the nation is "tipped for rapid economic expansion", the per-head wages and disposable income will remain low, it warns.

"In India, income inequality means that low wages are the norm, limiting household spending and creating many tiers of pricing as well as strong competition from a range of retail sources," the report further states, adding that neighbouring Pakistan has also shown similar indicators.

Full list of 10 cheapest cities in the world

City Country Ranking based on Cost of Living Index
Damascus Syria 133
Caracas Venezuela 132
Almaty Kazakhstan 131
Lagos Nigeria 130
Bengaluru India 129
Karachi Pakistan 127
Algiers Algeria 127
Chennai India 126
Bucharest Romania 124
New Delhi India 124

Damascus ranks first, whereas, Bengaluru, Chennai and New Delhi are ranked at 5th, 8th and 10th spot respectively.

"Within Asia, the best value for money has traditionally been offered by South Asian cities, particularly those in India and Pakistan," the survey notes, while casting negative light on the dismal cost of living in both the nations.

On Damascus and Caracus featuring at top of the list, the EIU attributes the political and economic instability in Syria and Venezuela to the sliding commodity prices.

Full list of 10 most expensive cities in the world

"Within western Europe, it is non-euro area cities that largely remain the most expensive. Zurich (2nd), Oslo (5th), Geneva (6th) and Copenhagen (8th) are among the ten priciest. The lone exception is Paris (2nd), which has featured among the top ten most expensive cities since 2003," the report adds.

New York has slipped out of the list, at 13th position, which the EIU has attributed to the weakening of US dollar in 2017.

(The above story first appeared on LatestLY on Mar 15, 2018 10:56 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).