In the song's lyrics, Harrison contrasts the world of material concerns with his commitment to a spiritual path, and the conflict is further represented in the musical arrangement as the rock accompaniment alternates with sections of Indian sounds.

Inspired by Gaudiya Vaishnava teacher A.C. Bhaktivedanta Swami Prabhupada, the song promotes the need to recognise the illusory nature of human existence and escape the constant cycle of reincarnation, and thereby attain moksha in the Hindu faith.

The contrasts presented in "Living in the Material World" inspired the Last Supper-style photograph by Ken Marcus that appeared inside the album's gatefold cover, and also designer Tom Wilkes's incorporation of Krishna-related symbolism elsewhere in the packaging.

[9] Tillery writes that "what we see and experience during the game is actually an illusion" – or maya in the Hindu belief to which Harrison subscribed[10] – and that "[w]hat does matter in the great scheme of things is to wake up from the dreamlike state we mistake for reality.

"[13][14] As reproduced in I, Me, Mine, Harrison wrote the lyrics to "Living in the Material World" on portions of a torn-up envelope, which was previously addressed to Terry Doran at Apple Corps in central London, its postmark dated 7 November 1971.

[16] He names his former bandmates John Lennon, Paul McCartney and Ringo Starr[27] in a verse that introduces a humorous aspect into the narrative:[26][28][nb 1] Met them all here in the material world John and Paul here in the material world Though we started out quite poor We got Richie on a tour.Inglis comments on Harrison's pun on the word "Richie", which can refer to the Beatles' financial success from 1963 onwards, in the sense of "riches", and to the improvements in musicianship brought about by the arrival of drummer Richard Starkey, also known as Ringo Starr,[26] who replaced Pete Best in late 1962.

[43] While citing the Bhagavad Gita as a significant influence on "Living in the Material World", Allison views the "dualistic anthropology" expressed in the song as "central to [Harrison's] self-conception and worldview".

[56][nb 3] Harrison was keen to pare down the production after the Wall of Sound excesses employed by Phil Spector on All Things Must Pass,[60][61] and chose to use a small group of backing musicians throughout the sessions.

[62][63] Aside from himself on electric guitar, the line-up on the basic track for "Living in the Material World" was Nicky Hopkins (piano), Wright (Hammond organ), Klaus Voormann (bass) and Starr and Jim Keltner (both on drums).

[16][nb 5] Author Alan Clayson likens Harrison's production style on Material World to that of Beatles producer George Martin and notes that "this moderation resulted in arrangements flexible enough for the title track to flit smoothly" between the contrasting rock and "celestial" Indian sections.

[21] Leng likens Harrison's soloing to the "passionate, rocking slide guitar" he supplied on "Edward" for Hopkins's The Tin Man Was a Dreamer album,[62] also recorded at Apple in late 1972.

[85] In keeping with the album content,[86][87] Tom Wilkes's design for the record's face labels contrasted a devout spiritual existence with life in the material world, by featuring a painting of Krishna and his warrior prince Arjuna on side one and a picture of a Mercedes stretch limousine on the reverse.

[90] Author Elliot Huntley views Living in the Material World as a concept album on which the material–spiritual "quandary" evident in the title track is "eloquently expressed" through the artwork's mix of religious symbolism and an inner-gatefold photograph that showed "[Harrison's] band indulging in a gratuitously sumptuous feast".

[2] NME critic Bob Woffinden also commented on the symbolism of this picture showing "Harrison with his musicians (Nicky Hopkins, Klaus Voormann, Jim Keltner, Ringo – the usual lot) enjoying a hearty repast, passing the no-doubt vintage wine, while in the background the longest limousine in the world awaits their convenience".

[96] Clayson has speculated on the symbolism and hidden messages within the photo: whether the nurse with a pram, set back from and to the left of the dining table, was a reference to Boyd's inability to conceive a child; and the empty, distant wheelchair in memory of Harrison's late mother.

[99] The same detail echoed the contrast in "Living in the Material World" between the illusory nature of human existence and what Allison describes as the "vital, eternal reality" offered by spiritual enlightenment.

[102] Harrison donated the copyright to "Living in the Material World" and eight other tracks on the album to the foundation,[103][104] one of the stated aims of which was "to encourage the exploration of alternative life views and philosophies".

[101] In his album review for Rolling Stone, Stephen Holden wrote of Harrison having "inherited the most precious Beatle legacy – the spiritual aura that the group accumulated" and suggested that he had "maintained its inviolability with remarkable grace".

[107] More recently, AllMusic critic Lindsay Planer has described "Living in the Material World" as "one of the more profound observations to be made about the somewhat schizophrenic struggle between universal existence and monetary-driven survival".

[16] Planer praises the recording as "a testament to the artist's ability to deliver the goods [as a guitarist], with searing albeit brief interaction with saxophonist Jim Horn" and similarly compliments the playing of Starr and Hopkins.

[109] While describing Material World as "meticulously produced", Blogcritics writer Chaz Lipp considers the "galloping title track" to be a song that "rank[s] right alongside Harrison's best work".

[113] Ian Inglis praises Harrison's "inventive" lyrics, of which the "got Richie on a tour" line is "one of his cleverest puns", and notes that the song's positioning in the running order "echoes George Martin's policy of always selecting a strong track to close each side of every Beatles album".