Slums in India

Western media headlines as usual are as follows – twenty five percent of Indians live on less than a dollar a day and seventy percent live on less than two dollars a day. The forgoing was the headline of May 9, 2005 in a major international newspaper. Others headlines are not any less mischievous. These are all meaningless analysis. It does not reflect that same amount of money has differing values in different places. A more acceptable and bit accurate description of incomes in countries is Purchase Power Parity (PPP), which is, pricing identical products and services as needed by the local population in different countries, thus establishing a new and a more equitable exchange rate. The foregoing is applicable mostly to tradable goods. The PPP will put India’s GDP at $3.7 Trillion. This will raise daily monies of twenty five percent of Indians at the lowest rung of the society to seven dollars. The latter is still low but is much higher than the Western media would like to project. The forgoing is not the point; the point is that poverty is a major shame in India’s otherwise decent, scientifically advanced, peace loving and at times turbulent image. Poverty creates slums and slums breed hopelessness and crime. Hence it needs to be tackled as an integral part of economic development.
The key question that arises - will the current hype in economical development in India alter the landscape for the very poor?
The answer is that, not much will change in next 20 to 25 years. The real impact will be felt later than twenty-five years. That is when 8% growth trajectory will take the PPP daily income of the very poor in India from seven dollars to forty dollars. By then, a $20 Trillion GDP economy (PPP basis) and $600 billion in exports (year 2001 basis) will add one hundred and fifty million jobs, of which forty to fifty million will go to the very poor segment of the society. This general prosperity will not only put food on the table but will add to better living, better housings etc. In the intervening period of 25 years, rising income levels will definitely add to the exodus from the slums to planned living areas. The forgoing also requires massive governmental effort to house people properly.
Let us examine this issue of poverty and slums in Indian cities and its relationship to