In fact, I'm surprised why this didn't happen earlier. Sounds win-win. For example, pay associates 60K in Nashik instead of 1L in Mumbai. The firms save money and the associates probably save more than they would in Mumbai and live in a better apartment. If there is an important physical meeting in Mumbai, the associate can travel by train. In fact, you can even keep associates in Raipur or Ranchi at 50K and ask them to fly down for physical meetings (at the firm's cost). It will still cost the firm less.
https://economictimes.indiatimes.com/jobs/hr-policies-trends/top-law-firms-rule-in-favour-of-smaller-cities-plan-to-hire-local-talent-in-nashik-pune-indore-jaipur-chandigarh/articleshow/109443643.cms?from=mdr