Blog 6: India – The Rich-Poor Divide in Mumbai
Updated: Jun 30
JOURNEY 4 - SERIES 1 - BLOG 6 - A PART OF 8 BLOGS IN SERIES 1 - Reading time: 5 Mins
Mumbai: India's Economic Powerhouse
Nowhere is India's economic success more visible than Mumbai. At the top end of the spectrum stand India's billionaires.
Often called the "City of Dreams," Mumbai is India's financial capital and one of the most important commercial centres in Asia. The city contributes a significant share of India's tax revenue, foreign trade, banking activity, insurance services, and financial transactions.
Many of India's largest companies are headquartered here.
Mumbai is also home to Bollywood, one of the world's largest film industries, exporting Indian culture across the globe. Walking through parts of Mumbai, I could easily see why many view the city as a symbol of India's future.
Bombay Stock Exchange, Mumbai Mukesh Ambani Residence, Antilia in Mumbai
India's Wealthiest Citizens
Individuals such as Mukesh Ambani, Gautam Adani, Savitri Jindal, and Shiv Nadar control vast business empires that span telecommunications, energy, infrastructure, manufacturing, and technology. Their companies employ hundreds of thousands of people and play major roles in India's economic development.
One of the most visible symbols of wealth is Antilia, Mukesh Ambani's residence in Mumbai.
Valued in the billions of dollars, it stands as a striking contrast to the crowded neighbourhoods located only a short distance away.
The juxtaposition perfectly illustrates the extraordinary range of living standards found within modern India.
The Rich Are Getting Richer
The wealthiest individuals in India have cornered a significant portion of the country’s wealth, largely through monopolies on business and inheritance. The top 10% of India’s population controls 77% of the total national wealth. In 2017, 73% of the wealth generated went to the richest 1%, while the poorest half of the population—comprising 670 million Indians—saw only a modest 1% increase in their wealth.
Mukesh Ambani, who heads the list of the wealthiest individuals in India, is followed by other prominent figures like Gautam Adani, Savitri Jindal, and Shiv Nadar. Their influence and power may be a current example of how India shaped the world.
Ambani’s residence, Antilia, located in Mumbai, is valued at a staggering $4.6 billion USD in 2023. The 27-story building boasts six private residential floors at the top. Its design incorporates motifs of the lotus plant and the sun, symbolizing prosperity. Antilia is equipped with luxurious amenities, including a 168-car garage, a ballroom, a health center, and a 50-seat theatre.
Yet Mumbai also revealed another side of India.
Dharavi: Asia’s Largest Slum
One of the most enlightening experiences of my trip was visiting Dharavi, often described as the largest slum in Asia.
Before arriving, I carried many of the assumptions commonly associated with slums—poverty, overcrowding, poor sanitation, and limited opportunity.
Those conditions certainly exist.
Population density is astonishing.
Access to water and sanitation remains challenging.
Housing conditions are often basic.
Most slum houses in Dharavi lack individual toilets and taps. Residents must pay to use community toilets, which are seldom maintained, and they buy overpriced water from vendors. In fact, 78% of community toilets in Mumbai’s slums have no water supply, and 58% lack electricity. Many homes also don't have proper doors, further highlighting the poor living conditions.
As I walked through the alleyways, I found myself navigating a maze of narrow passageways between concrete houses. The place truly felt like a labyrinth, and it would be easy to get lost here. The lanes were barely wide enough for two people to pass each other. Overhead, the buildings' overhangs and tangled power lines blocked out much of the light, making the alleyways dark and claustrophobic.
Every few metres, a doorway led into a small, 4-square-metre room that served as the kitchen, living room, and bedroom for an entire family. Inside, people would often be lying on the floor, watching TV. I found it interesting that some people here could still afford satellite TV, despite the difficult conditions. These same homes also had access to electricity and water, which meant that the living conditions for some residents were relatively better than for others.
As I continued through the narrow lanes, barefoot children greeted me with a cheerful "hello" or "namaste." It was hot and stuffy, with very little airflow, and I had to constantly duck to avoid hitting my head on buildings, metal bars, or the dangling electrical wires above.
The children, though barefoot or wearing jandals, seemed friendly and happy, running around with energy. In contrast, the working adults appeared much more focused on their tasks, often looking grim and not pausing to engage. They would politely make room for me to step aside as they hurried to continue their work.
Yet what surprised me was how incomplete this picture proved to be.
A Thriving Informal Economy
As I spent time in Dharavi, I discovered a vibrant and highly productive economic ecosystem.
Thousands of small businesses operate within the narrow alleyways.
Recycling industries process enormous quantities of plastic, metal, leather, and other materials.
Workshops manufacture clothing, bags, containers, household products, and countless other items.
Many residents live and work in the same small space, eliminating long commuting times and reducing living costs.
The estimated economic output generated within Dharavi reaches into the hundreds of millions of dollars annually.
Commercial Zone
In Dharavi, the commercial zone boasts a thriving informal economy, with an estimated annual turnover of one billion USD. Here, numerous small businesses recycle materials into finished products. Large quantities of recyclables from Mumbai are collected and funnelled through the narrow alleyways, where they are processed and reassembled into new products. The range of products manufactured is vast, with one notable example being luxury branded luggage.
The process begins with breaking down discarded luggage into its many components. Next, these parts are reassembled into ready-to-sell luxury luggage under well-known brands like Samsonite, Guess, and American Tourister. Once completed, the luggage is wholesaled to retail outlets. To the average consumer, there’s little visible difference between genuine and fake products, and many are simply pleased to believe they’ve found a bargain.
Another significant business in the area is the production of luxury branded leather goods. Used leather products are dismantled, reprocessed, and transformed to look "new." The leather is then made into finished goods—bags, wallets, purses, and accessories—before being sold in retail outlets.
Other industries I saw in Dharavi’s commercial sector included the recycling of plastics into bottles, containers, and parts for appliances, as well as the manufacturing of various products for further processing.
Clothing production is another major industry in Dharavi and a current way of how India shaped the world. I bought a Real Madrid shirt with Ronaldo’s No. 7 on the back for just NZD 6 from a small business where ten young men, all migrants from across India, worked using old Singer sewing machines with foot pedals. They slept beside their machines to save on rent, and this type of activity was repeated countless times throughout Dharavi.
Since most slum houses lack laundry facilities, this has created an opportunity for laundry businesses that serve local residents. Water is drawn from a well, clothes are washed by hand, beaten on a hard surface to remove excess water, then hung on a clothesline to dry before being folded and returned to their owners.
What stood out to me in the commercial section of Dharavi was the industrious nature of the people working there. They were deeply focused on their tasks, fully aware that their income is directly tied to their productivity.
What struck me most was the entrepreneurial spirit.
Everywhere I looked, people were creating opportunities from limited resources.
Community and Social Capital
Perhaps the biggest surprise was the strength of community life.
Many residents share childcare responsibilities, support neighbours during difficult times, and rely on extensive informal networks. While living conditions are often challenging, strong social bonds help many families cope with daily hardships.
This partly explains why some residents resist relocation into government-built apartment complexes. While modern apartments may offer better physical conditions, they can also disrupt social networks, economic activities, and community support systems that have evolved over generations.
The Human Side of Dharavi
Walking through Dharavi's residential areas was an experience I will never forget.
The alleyways were narrow, crowded, and labyrinth-like. Small rooms often served simultaneously as kitchens, bedrooms, and living spaces. Yet among these difficult conditions I encountered warmth, friendliness, resilience, and optimism.
Children enthusiastically greeted visitors.
Workers remained intensely focused on their tasks.
Families continued to build lives despite limited resources.
The experience reminded me that poverty should never be defined solely by physical surroundings.
Human dignity, community, and determination were evident throughout Dharavi.
Reflections on the Rich-Poor Divide
As I reflected on my travels, I realised that India's story cannot be reduced to either poverty or prosperity.
Both realities exist simultaneously.
India is producing world-class entrepreneurs, global corporations, technological innovation, and economic growth on a scale rarely seen in history.
At the same time, hundreds of millions of people continue to face significant challenges in education, healthcare, housing, sanitation, and employment.
The country is engaged in one of the most ambitious economic transformations ever attempted.
Whether India can successfully reduce inequality while maintaining rapid growth may become one of the defining questions of the twenty-first century.
My travels showed me that India's future will not be determined solely by its billionaires or its slums.
It will be shaped by the ability of ordinary Indians to access opportunity, improve their lives, and participate in the country's remarkable growth story.
The rich-poor divide remains one of India's greatest challenges—but also one of its greatest opportunities.
And understanding that divide provides another important insight into how India continues to shape the world.
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