I feel you. I grew up in Mumbai but I don't live there at present. The pollution seems to be worse every time I visit; I think it'll get worse before it gets better. Violent crime isn't that much of a problem in Mumbai in my experience (I've heard Delhi is pretty bad).
> Some of the nicer himalaya hill stations seem like a better idea for a retirement destination.
Can't say I haven't considered that also. Though a lot of them (eg. Manali) are horrible tourist traps. I guess it might work if you can build up a social circle there and you prefer outdoor activities (hiking, climbing, rafting) over city attractions (art, theater, restaurants and bars). And the Internet is going to be very slow. And every time you want to travel it's going to be an 8+ hour train or bus ride to the nearest major city airport. And even then $2k/yr is not going to be enough (unless you live like some of the poorer than median locals). So it's really not for everyone.
If you could see yourself retiring to a remote part of say Wyoming or Montana (comparing just the relative isolation), then you might have the right personality to make a success of it.
If you're not retired or working remotely I would never suggest living in India or anywhere in the third world for that matter - making money is so much easier in the west.
[1] random example: https://www.google.de/maps/dir/Shimla,+Himachal+Pradesh,+Ind... almost every Indian town will have a major city within a couple hours' distance, the country is very densly populated.
Some of the nicer himalaya hill stations seem like a better idea for a retirement destination.