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Indian Number System

Why Does India Use Lakh and Crore?

India uses lakh and crore because its traditional numbering system groups large numbers differently from the international thousand–million–billion system.

The Simple Explanation

In the Indian numbering system, large values are commonly expressed using lakh and crore. One lakh equals 100,000, while one crore equals 10,000,000.

These terms remain widely used in India because they are familiar, practical, and deeply established in everyday speech, finance, salaries, property listings, government budgets, and business reporting.

What Is a Lakh?

1 lakh = 100,000

A lakh is commonly used for salaries, savings, education expenses, vehicles, and property values. For example, ₹10 lakh means ₹10,00,000, which equals one million rupees.

Convert 1 lakh to USD

What Is a Crore?

1 crore = 10,000,000

A crore is used for larger amounts such as company revenue, real estate, major investments, public spending, and net worth. One crore equals 100 lakh or 10 million.

Convert 1 crore to USD

Why Are the Commas Different?

The international system groups digits in sets of three:

10,000,000

The Indian system keeps the final three digits together, then groups the remaining digits in pairs:

1,00,00,000

Both numbers represent the same value. The difference is only in how the digits are grouped and spoken.

Indian and International Number Comparison

Indian term Indian format International format International term
1 lakh1,00,000100,000One hundred thousand
10 lakh10,00,0001,000,000One million
1 crore1,00,00,00010,000,000Ten million
10 crore10,00,00,000100,000,000One hundred million
100 crore1,00,00,00,0001,000,000,000One billion

Where Lakh and Crore Are Used

  • Salary packages and LPA compensation
  • Property and land prices
  • Company revenue and valuations
  • Government budgets and public spending
  • Investments, loans, and savings
  • Population and audience figures

Lakh and Crore FAQ

Why does India not simply use millions and billions?

Millions and billions are understood and sometimes used, especially in international contexts, but lakh and crore remain more natural and familiar in domestic Indian usage.

Is lakh used only in India?

Lakh and crore are also widely understood and used in several South Asian countries and communities.

How many lakh are in one crore?

One crore equals 100 lakh.

Is one crore the same as ten million?

Yes. One crore equals 10,000,000, which is ten million in the international numbering system.

What does LPA mean?

LPA means lakh per annum. A salary of 10 LPA means ₹10 lakh per year.