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Introduction

Urban poverty in India reflects a paradox as World Bank data shows a steep decline from 10.7% in 2011 to 1.1% currently . However, inequality and precarity persist in reality. Unlike rural poverty, it stems from informal work, inadequate housing and weak social security, trapping generations in deprivation. This calls for assessing drivers, interventions and inclusive livelihood strategies.

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Primary Drivers of Urban Poverty

• Unplanned Urbanisation: Rapid migration without affordable housing forces the poor into slums and informal settlements, creating overcrowding and unsafe living conditions.
  Eg: Dharavi in Mumbai, one of Asia’s largest slums, emerged due to the absence of low-cost housing in the city.
• Regional Disparities: Underdeveloped Tier-2 and Tier-3 cities cannot provide adequate jobs, compelling workers to migrate to mega-cities that are already overstressed.
  Eg: Workers from the interior of the country migrate to metro cities like Delhi and Mumbai due to limited employment at home.
• Exclusion from Social Security: Migrants often lack ration cards, residency proof, or digital access, leaving them invisible to welfare schemes.
• Intergenerational Poverty Trap: Children in slums face poor education, health, and nutrition, pushing them into low-wage informal jobs, thereby continuing the cycle of poverty.

Challenges in Countering Urban Poverty

• Precarious Informal Employment: Urban poor rely on casual, daily-wage jobs with “no work, no pay,” leaving them highly vulnerable to shocks.
  Eg: Street vendors in many megacities lost livelihoods completely during COVID-19 restrictions.
• High Cost of Services: Cities have hospitals, schools, and piped water, but high costs make them inaccessible for the poor.
• Weak Social Networks: Unlike villages, urban poor lack community bonds or family support, deepening isolation during crises.
• Slum Proliferation and Risks: Slums create unsafe housing, poor sanitation, and health risks, reinforcing cycles of poverty.

Efficacy of Existing Government Interventions

• One Nation, One Ration Card (ONORC): Ensures food security for migrants by allowing ration access anywhere in India.
  Eg: The Food Ministry reported 28 crore ONORC transactions in 2023.
• Swachh Bharat Mission – Urban 2.0: Improves sanitation and hygiene by building public toilets and waste systems, especially aiding slum dwellers.
  Eg: Indore retained its top rank as India’s cleanest city through SBM-driven community mobilisation.
• Pradhan Mantri Awas Yojana – Urban (PMAY-U): Provides affordable housing to curb slum growth, though slow execution reduces impact.
• PM SVANidhi Scheme: Offers collateral-free loans to street vendors, ensuring access to credit for informal workers.

Multi-Pronged Strategy for Sustainable & Inclusive Urban Livelihoods

• Inclusive Urbanisation: Decentralised planning and citizen participation ensure policies meet real urban needs.
  Eg: Kerala’s Kudumbashree network implemented DAY-NULM effectively through women’s collectives.
• Strengthening Tier-2 & Tier-3 Cities: Building jobs, infrastructure, and services in smaller cities reduces migration to metros.
• Empowering Urban Local Bodies (ULBs): Decentralised governance strengthens accountability and sustainability in service delivery.
  Eg: Indore’s ULB-led sanitation drive turned cleanliness into a mass movement.
• Targeted Social Security & Skills: Expanding skill training, labour-intensive industries, and universal documentation reduces exclusion from welfare.
  Eg: DAY-NULM’s “Hunar Se Rozgar” programme upskilled urban youth for local jobs.

Conclusion

By 2050, Indian cities will generate nearly 75% of GDP while contributing 60% of emissions, making inclusive urbanisation vital for sustainable growth. Addressing urban poverty requires livelihood creation, skill training, social security, and empowered local governance. For a $5 trillion economy, cities must ensure dignity, opportunity, and resilience for all.

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