Consumer Purchasing Power in Mumbai’s Dharavi Slum
Datawocky takes a look at a recent McKinsey report on that mirrors my experience with the surprising purchasing power inside Mumbai’s famous Dharavi slum:
Kashyap Deorah moved back to India from the US recently, and has spent the last several months visiting Dharavi to understand its micro-economy. Every street in Dharavi is home to an electronics dealer. The main business is used cell phones and prepaid SIM cards; India now has over 246 million cell phone subscribers, with the number growing at a scorching pace. One of the hottest items is — hold your breath — used flat screen LCD televisions! Surprising, yet clear enough when you think about it: space is at a premium, so slum-dwellers behave rationally in opting for flat screen televisions.
It’s tempting to view this as a good news story and the fact that Indian slum dwellers have a surprising purchasing power is of course reason for optimism. But as I’ve said before: if they can afford a flat screen TV they should be able to afford a place with sanitation and running water! Mumbai’s rent control legislation is one of the worst failures of political leadership I’ve ever come across.
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