Ahmedabad
Poverty

In the mid-1970s and early 1980s, the textile mills that were responsible for much of Ahmedabad's wealth faced competition from automation and domestic specialty looms. Several mills closed down, leaving between 40,000 and 50,000 people without a source of income, and many moved into informal settlements in the city centre. The Ahmedabad Municipal Corporation (AMC), the governing and administrative body of the city, simultaneously lost much of its tax base and saw an increased demand for services. In the 1990s, newly emerging pharmaceutical, chemical, and automobile manufacturing industries required skilled labor, so many migrants seeking work ended up in the informal sector and settled in slums.

Ahmedabad has made efforts to reduce poverty and improve the living conditions of poor residents. The urban poverty rate has declined from 28% in 1993–1994 to 10% in 2011–2012. This is partly due to the strengthening of the AMC and its partnership with several civil society organizations (CSOs) representing poor residents. Through projects and programs, the AMC has provided utilities and basic services to slums. However, some challenges remain, and there are still many residents who lack access to sanitation, clean running water, and electricity. Riots, often rooted in religious tensions, threaten the stability of neighborhoods and have caused spatial segregation across religious and caste lines. There remains to be seen a concerted effort to balance pro-poor, inclusive development with national initiatives that aim to create 'global cities' that are the focus of capital investment and technological innovation.
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