I live in Vaḍodarā in Gujarāt state. It is cheaper than places like Dillī and Beṅgalūru simply because there is less competition for resources like rent, water, power, food, fuel, etc. AND you are not having to travel as far and still reach the other side of the smaller city (maybe something very specialized is only available on the opposite side, and you have to travel there).
My monthly budget is only about Rs. 26k-29k monthly as a paid guest in a house.
I cannot answer the question about jobs, except to say that it is notoriously difficult to even figure out the process of getting an employment visa on BOTH SIDES of the world. Expect to hire a lawyer/attorney (BOTH SIDES) to figure this Great Mystery out. Therefore, I am "retired" until I figure out an online job to earn some extra money above what I get each month.
Expat-friendly? The only white people I have seen here in my city are tourists. I have not found any ex-pats, as I am not looking for them. It's not that I don't want to meet them, but rather, that the thought doesn't come up because I am comfortable with living with and interacting with Indians. This is similar to growing up among Native American Hispanics in south Texas around the Valley area. It helps that I have a cultural and spiritual affinity for all things India.
That said, there are a few pointers to keep in mind, especially if you are trying to save money by going to Tier-II/III cities.
1) There may only be a handful of ex-pats, if any, living in your chosen city, so get used to the stares from people. Either they are not used to seeing white people, or they may think that you are a Christian or non-Hindū and trying to convert people. If you get stares from people, try to acknowledge at least one in the streets by smiling and saying hello or namaste to them. They will appreciate that you notice them as another person and not as an exotic "other."
2) In these cities, you may find an absence of dust bins and garbage dumpsters, so you may find the city to be dirty in general, as attention is being focused on Tier-I cities (OR Smart Cities) in response to the neglect of 70 years of Nehruvian/Congress party rule. Eventually, the efforts will spread out to Tier-II and then Tier-III cities in the future.
3) Roads may be in disrepair in many places, because, once again, more efforts to catch up with development is focused on the bigger cities at the moment. Here's a stark difference: between Delhi and Āgrā, road construction is moving so fast that GPS software cannot keep up with the constant rerouting of traffic around construction areas and reopening of finished sections. On the other hand, if you go to remote areas, you may find even National Highways like in western Gujarāt state where you drive for a few kilometers (or sub-kilometer-length sections) of finished road only to be rerouted onto kilometers of car-destroying gravel/rock roads. You will see that these stretches appear to be abandoned because there are no road-building equipment ANYWHERE. What should take 2 hours can take as long as 4-6 hours to reach another city.
4) If you need banking services, like to get cash, install an app like Western Union or Transferwise on your phone so that you can go there and pick up your money. Caution! Start the app when you are AT the pick up location! That way, when the transaction has been authorized, you can show them the record number immediately, and they can claim that transaction so that someone corrupt in another city doesn't see it on their monitor and end up stealing from you blind. However, I have an Indian bank account, and you CAN use these transfer services to do direct bank account to bank account transfers with no fees, so that you can withdraw in Rs. from the ATM with no fees. If you prefer not to have a local bank account and draw off your nation's banking account, BE SURE to inform your personal banking contacts (employees whom you talked to at the bank prior to leaving for india) REGULARLY that you are still in india, and alert them to any big transactions you might have to make in advance so that they don't lock your account for "suspicious activities." ALSO, check with your nation's bank about the in-app feature of locking your debit/credit cards from the computer/phone so that when you need to use the cards, you can unlock it, use it, and lock it back up so that people with scanners walking by can't crack your cards and use them. Ask for a second replacement debit/credit card to take with you before you depart as a backup in case you lose or damage your primary cards. And PLEASE don't carry both the primary and replacement cards on you at the same time!
For me, being attracted to Indian culture and spirituality, I think that Vaḍodarā is an AWESOME city to live in. It is smaller, easier to get around in, cheaper to live in, and because this is a "traditional Hindū-historic" city, there are many Hindū festivals that you can participate in. Also, I am active in my local community as far as being friends with my neighbors and original contacts in the city goes. The food is great, also! I live for the spirituality and the interactions with people.