Contribution to economy from Slums

Asia's largest slum, Dharavi, lies on prime property right in the middle of India's financial capital, Mumbai. It is home to more than a million people.

In a city where house rents are among the highest in the world, Dharavi provides a cheap and affordable option to those who move to Mumbai to earn their living. Rents here can be as low as 185 rupees ($4/£2.20) per month. As Dharavi is located between Mumbai's two main suburban rail lines, most people find it convenient for work.

Though living conditions are extremely inhabitable, Dharavi  has a large number of thriving small-scale industries that produce embroidered garments, export quality leather goods, pottery and plastic. Most of these products are made in tiny manufacturing units spread across the slum and are sold in domestic as well as international markets.

In such a dilapidated state Dharavi continues to be the Mecca of recycling and reuses industry. Waste collected by rag pickers and various agencies is segregated and reused here.  Local residents are skilled to make plastic wire coverings out of the plastic collected from waste.

The annual turnover of business here is estimated to be more than $650m (£350m) a year. At least 50 industrial units in Dharavi, have a monthly turnover of Rs one crore each or that the average family income here is between Rs 13,000 and Rs 15,000 a month.

The state government has plans to redevelop Dharavi and transform it into a modern township, complete with proper housing and shopping complexes, hospitals and schools. It is estimated that the project will cost $2.1bn (£1.1bn). Though the redevelopment schemes are debatable, it will be implemented to improve the status of Mumbai and to make better use of that precious portion of land in the heart of the city.

Apart from Dharavi people from other slums do contribute to the economy directly or indirectly by seeking jobs like maids at local buildings, carpentry, electricians, construction labours etc.