As the world becomes more interconnected and interdependent, urbanization should be impacted most. With wholesale implementation of capitalistic and liberalistic market systems, clubbed with economic decentralization to expedite economic growth across all sub-regions, urban slums should become more vulnerable to fit in the entire urbanization fabric. Case study of India should be utilised in examining historical urban slum growth through different modes of decentralization policies. It is assumed that a clear analysis of the matter should culminate into a strategic advantage for the central and local government bodies to embody pro-socialist policies while accommodating urban slums and managing constant migration from rural to urban centres.
Economic decentralization with the support of international institutions has had mixed reactions. Infrastructure growth has increased and is consistent, but it always trails the capacity of the city to utilise it for advancements (Datta-Ray & Das, 2006). Infrastructure growth has expedited foreign investments, and part of the realisation of the demand of infrastructure has been due to the rise in slum population and difficulty in manoeuvring infrastructure development in a space scarce city. Hence, it is a question whether the infrastructure demand rose of its own genuine sake or emerged suddenly due to higher population and unavailability of proper transport networks, water, electricity, and leisure spaces inside the city (Topalova, 2005). The problem looks to be resolving when investments and new facilities are built for upgrading slums, but with the incessant rise of rural influx, the possibility of realising an entire slum upgrade moment remains invincible (Kozel & Kozel, 2014). The ideal culprit hence is the disparity in city development and not allowing proportionate development across all cities instead of concentrating only on one city. Banerjee-Guha (2009), Harriss (2007) and Chakrabarti (2007) asserted that the provincial and central programs for urban renewal are too neo-liberal, creating an uneven incompatibility within urban communities, especially those between slums dwellers and well-off urban residents. Liberalist ideology of international institutions have just lending financial support, but lacking in offering a conducive investment which unifies the hierarchical classes in Mumbai.
International institutions have thus propelled slum growth by making cities more attractive, liberalising policies in provinces, funding infrastructure projects, but a solution that can solve or reduce slum resurgence remains out of sight (Douglass, 2000).