Slum dwellers contribute 7pc to GDP

Slum dwellers contribute 7pc to GDP

Braving abject poverty, people living in urban slums contribute over seven per cent of the country’s GDP.

“Assuming urban GDP is about 60 per cent of total GDP, the total contribution of informal settlement dwellers is 7.53 per cent,” said a study released here on Tuesday.

The study conducted by Society for Participatory Research in Asia (PRIA) and Indicus Analytics on “Economic Contributions of Urban Poor”, also found that in some big cities, the contribution of slum dwellers to GDP vary from 10 to 15 per cent.

The study also says that slum dwellers spend 47 per cent of their earning on food, 7.38 per cent on health care and 6 per cent on  conveyance. However, debt is common among informal settlers and penetration of banks and microfinance institutions is very low.

The study was conducted among 5,353 households and 24,445 individuals spread across 50 major cities in the country, aimed at capturing information on income, expenditure, employment and nature of occupation.

The study stated that in million plus cities, nearly 40 per cent of the households are in slums. Five metro cities of the country, namely, Mumbai, Delhi, Chennai, Hyderabad, and Kolkata account for more than 50 per cent of total slum households in the country.

The objective of the study was to look into the contribution of informal settlement households to urban economy, Rajesh Tandon, President of PRIA told reporters here.

The primary reason for looking at this particular question was to determine whether the informal settlement households, who normally form the poor strata of urban population, do contribute to the urban economy to a significant extent or not, he added.

In Maharashtra, Odisha, Chhattisgarh, and Delhi, about 50 per cent of slum dwellers do not have sanitation facilities within their homes.

“At the country level, 36 per cent of slum households do not have three basic facilities - electricity, tap water and sanitation in their homes,” the study said.

The study also found that the average monthly income of more than 41 per cent of the total urban households is between Rs 5,000 - 10,000 while 25.6 per cent of such households earn less than Rs 5,000.

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