Cost of living is insanely cheap in India. $2000 USD is roughly equal to 149,300 INR (not fancy living, but enough to be comfortable). Food, Labor, etc. are all fairly inexpensive -- its mostly property which is costly (or alternately, imported items like electronics due to taxes).
When I visited back in 2003, an entire days's food (Breakfast, Lunch, Dinner) only cost me 100 Rupees a day. On the flip side, when I visited the store, brand new Game Boy Color systems (which were already outdated by then, having been replaced with GBA) were being sold for 25,000 INR (roughly $350).