‘Slum dwellers add over 7.5% to GDP’

The states with large slum population are Maharashtra,Orissa,Chhattisgarh and Delhi.

Written by ENS Economic Bureau | New Delhi | Published: October 16, 2013 3:52:54 am

Slums in Gujarat,Andhra Pradesh and Punjab have higher access to electricity,water and sanitation than their counterparts in Uttar Pradesh,Maharashtra and Bihar.

A joint study by research firm Indicus Analytics and civil society organisation PRIA shows that against the all India average of 36 per cent of slum households with these facilities,Kerala,Gujarat,Delhi NCR and other states perform better. In states such as Bihar,Assam,Chhattisgarh and Orissa,less than 20 per cent of slum households have access to these basic amenities.

But since other than Delhi,these states do not figure in the top five slum carrying population of Indian states,their improved performance has not helped the sector significantly.

The states with large slum population are Maharashtra,Orissa,Chhattisgarh and Delhi. The study titled ‘Economic Contribution of Urban Poor in India’ also said that the people living on the informal settlement dwellers contribute about more than 7.5 per cent to the country’s GDP.

The study claims that slums should not be seen as subsidy sinks but as investment multipliers. It says a one unit of increase in income by households here results in growth of 1.4 unit of GDP.

“With an injection of one additional unit of demand from informal settlement households will result into an additional output generation of 2.90 units in the economy,” the study has stated.

“Urban poverty can be dealt with in an efficient way,if we consider contribution of informal sector’s contribution,” Laveesh Bhandari,director,Indicus noted.

The study reveals that contrary to the perception,poor people will always exist in any urban situation which can be envisaged currently. “Slum dwellers are integral part of city life and city ecosystem,” Rajesh Tandon,PRIA,said.

The study also challenges Census 2011 data that says 17.4 per cent of the total urban households are currently living in slums. The Indicus-PRIA study demonstrates the numbers are higher.

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