Introduction: India is the 'Diabetes Capital' of the world. The number of cases of diabetes is sharply increasing and so are the complications from diabetes. Owing to the chronic nature of the disease, cost of care is a cause of concern. Methods: It is a prospective study designed at a 1,350-bed university teaching hospital in South India. A total of 300 patients from outpatients and in-patients were included in the study. Direct and indirect cost of diabetes management was derived from each individual bill. Cost of illness for a patient was calculated to understand the economic burden. Results: Average direct cost of a single visit of a podiatry patient in OP was `1,594 and for a diabetes patient was `1,400. Cost of hospitalization of a podiatry patient was `52,574 and for a diabetes patient was `31,999. Conclusion: High cost of care of diabetes and diabetes-related complications by both direct and indirect costs drive the urgency to have governmental/insurance support for chronic disease management for better living.