Mobile Tea/Coffee Stall (Sarojini Market, New Delhi)
My government’s effort would be to create a slum free India in five years through the Rajiv Awas Yojana
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| — | President of India, Pratibha Patil’s address to the Joint Session of 15th Lok Sabha in New Delhi, June 2009 |
Mumbai’s Dharavi slum is the most entrepreneurial place I’ve ever been. In one dark room—open to the street—there are two men recycling boxes by turning them inside out and re-stapling them. Across the dusty street, six women work together sorting great bins of plastic products for recycling. A few doorways down two men are maniacally sewing brassieres, just like on Manhattan’s Lower East Side in 1905. A little ways off craftspeople are painting and firing intricately designed ceramics.
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| — | “New Land of Opportunity” by Ed Glaeser, Forbes Magazine |
BT moved to Mumbai in his early teenage years from Darbangha District in Bihar. With only a primary school education, BT managed to land a few odd jobs after arriving in the city, and moved from one employer to the next for several years.
Eventually, 7 years ago, BT had accumulated enough capital to start his own business – a hair cutting salon.
BT’s salon, Popular Hair Cutting Saloon, is located in a busy commercial market in Mumbai called Cheera Bazaar. BT has fitted 4 chairs in his salon, and has 4 employees working for him. He offers a variety of services at Popular, like haircuts, shaves, massages and facials priced between Rs. 30 to Rs. 800. BT earns approximately Rs. 11,000 a month from Popular, after accounting for all expenses.
Following his success with Popular Hair Cutting Saloon, BT was able to save enough over the years to open two additional salons, New Popular Hair Cutting Saloon in Dhobi Talao and Hari Om Cutting Saloon in Fanaswadi, Mumbai.
In total, BT employs 14 workers, and earns a net income of approximately Rs. 30,000 per month.
BT currently lives with his wife, RT, and their three children in a rented flat in Bhayandar. Previously, BT lived with his family and his younger brother in a 150 sq ft room adjoining Popular Hair Cutting Saloon. Pressed for space with five members sharing one room, his brother frequently had to sleep in the salon quarters. BT’s sons, (aged 10 yrs and 7 yrs) both attend a private school close to their residence.
With three flourishing businesses and his children enrolled in school, BT felt ready to fulfill his final dream of purchasing his own home.
In mid 2010, BT found this home in an affordable housing project called Rashmi Star City, located in Naigaon (E). Through his savings, BT was able to put down an initial down-payment for the flat; however, he still required a mortgage to finance the remaining amount.
Despite steady monthly earnings from his three salons, BT was automatically ineligible for a loan from mainstream housing finance companies for lack of formal documentation supporting his income. Through a referral from the builder, BT approached MHFC for a loan. Recognizing both his capacity as well as his willingness to repay, BT’s application was approved and MHFC sanctioned him a loan.
BT is now the proud owner of a 1 BHK flat in Naigaon (E). His family will move into their new residence by the end of this year.
in·for·mal·i·ty
noun /,infôr’malitē/
informalities, plural
1. Relaxed, friendly or unofficial style of nature; absence of formality
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INFORMAL EMPLOYMENT
It is estimated that over 90 percent of India’s workforce is employed in the informal sector.
~ approx 370 million workers, i.e. > population of the United States.
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INFORMAL HOUSING
One fifth of India’s urban population live in informal settlements (slums).
~ 42 million residents, i.e. roughly the population of Colombia / Spain.
