Urban Poverty: Slums, Livelihood, and Inclusive Policies
July 19, 2026
Introduction
Urban poverty is a complex and multidimensional phenomenon characterised by inadequate housing, insecure livelihoods, lack of access to basic services (water, sanitation, healthcare, education), and social exclusion. With India's urban population projected to reach 600 million by 2031 (40% of total population), addressing urban poverty is critical for inclusive development. Urban poor populations are concentrated in slums — informal settlements that house 65 million Indians, according to Census 2011 (likely 100+ million now).
Defining Urban Poverty
Key Dimensions
Dimension
Description
Income Poverty
Below urban poverty line (₹1,400/capita/month in 2023–24 approximate)
Housing Poverty
Slum housing, lack of tenure security, inadequate space
Infrastructure Deprivation
No piped water, individual toilet, electricity, drainage
Social Exclusion
Caste, religion, gender, migrant identity — discrimination in access
Vulnerability
Insecure livelihoods, debt, health shocks, eviction risk
Political Voicelessness
Slum dwellers are not voters in the city (linked to home town)
A slum is a residential area where dwellings are unfit for human habitation due to dilapidation, overcrowding, lack of ventilation, sanitation, or drinking water. Slums can be:
Notified slums: Recognised by state government.
Recognised slums: Identified but not notified.
Non-notified slums: Not officially recognised (most vulnerable).
Major Slum Clusters in India
City
Slum Population (%)
Notable Slums
Dharavi, Mumbai
~50%
Dharavi (Asia's largest — 1M population in 2.1 sq km)
Delhi
~30%
Bhalswa, Kusumpur, Sanjay Camp
Kolkata
~40%
Bastee clusters, Canalside colonies
Chennai
~25%
Nochikuppam, Vyasarpadi
Bengaluru
~20%
Ejipura, Sampangiram Nagar
Hyderabad
~22%
Begumpet, Balapur
Ahmedabad
~15%
Ramdevnagar, Juhapura
Pune
~25%
Yerwada, Sangamwadi
Characteristics of Slums
Feature
Description
Housing
Kutcha/semi-pucca, small (80–150 sq ft), multiple families
Tenure
No legal title; live-in fear of eviction
Water
Community taps, water tankers, sometimes paid private supply
Sanitation
Community toilets (often unusable), open defecation
Drainage
Open drains, waterlogging during monsoon
Electricity
Often illegal connections (high tariff), frequent outages
Health
High infant mortality, TB, anaemia, vector-borne diseases
Education
Low school attendance; children work to supplement income
Safety
Crime, drug abuse, police harassment, fire hazard
Finance
Moneylenders (high interest), limited bank accounts
Livelihood of Urban Poor
Occupation Patterns
Sector
Share
Examples
Construction
~30%
Daily wagers, masons, plumbers
Manufacturing
~15%
Piece-rate work in garment, leather, plastic factories
Urban employment guarantee (similar to MGNREGA) — proposed
Social Protection
Portability of social security; e-Shram for urban workers
Skill Development
Link DAY-NULM to industry demand; on-the-job training
Financial Inclusion
Banking correspondents in slums; Jan Dhan + micro-insurance
Participatory Planning
Ward committees, area sabhas for slum communities
Health
NUHM expansion; mobile health vans in slums
Global Examples
City/Country
Programme
Impact
Medellín, Colombia
Cable cars, library parks, slum upgrading
Social integration of hill slums
Rio de Janeiro, Brazil
Favela upgrading (PAC programme)
Infrastructure + tenure
Kampung Improvement, Indonesia
Community-driven basic services
Low-cost, high-impact
Seoul, South Korea
Joint redevelopment (SHARE)
Public-private slum rehab
Thailand
Baan Mankong (Secure Housing)
Collective land lease, upgrading
Conclusion
Urban poverty in India is not merely a housing deficit — it is a systemic failure of urban governance, land markets, and social protection systems. Slums are not the problem; they are the coping mechanism of a rapidly urbanising society whose formal systems exclude the poor. Inclusive urbanisation requires a rights-based approach: secure tenure, access to basic services, livelihood support, and political participation. The forthcoming National Urban Policy (draft) and PMAY-U 2.0 offer opportunities to reimagine cities that work for all, not just the affluent.