As you can see part of the reason is because of the PPP (Purchasing power parity) between US and India. (But of course it also depends on individual taste and choice you make. e.g. I can spend more money going to a hip restaurant in Pune than most places in Seattle)
Coming back to my personal satisfaction index, I have realized that it is not how much money I make or whether I can afford something expensive. It is the differential between what I make and how much I spend that makes me more happy. If all this is confusing, all you can take away from this is that I am a cheap guy! ;)