ACCCRN – City Vulnerability Assessment Report 47
slum and low income households is in the range of 3-5, indicating less than 10
th
class education, which hardly provides any benefit in terms of earning capacity.
Even the middle class shows a high proportion of persons with low education indices signifying that the high urban literacy rates do not benefit significantly towards earning
capacity. With the city hoping to transform in to knowledge city, would require immigration of large number of educated persons to meet growing needs.
Education has remained a major constraint until last decade, where the state has invested heavily on improving literacy, but it has not enabled the neo-literates with higher education to
meet the growing challenges of shift from primary and secondary occupations to service based livelihoods. Indore was a trade and commerce town in the past.
With the setting up of Industrial estates in the neighborhood, hi-tech manufacturing sector has been attracting highly educatedskilled human resources. The second transformation to
service sector based economy will require major improvements in education and skill levels, failing which the income vulnerability is likely to increase.
Under the urban transformation and climate change scenario, the city would require major investments in education to empower the households to shift away from resource intensive
manufacturing industry to less water demanding livelihoods.
4.9.2 Income Stability Index
Indore city emerged from being a trading centre to textile manufacturing city to a hub for automotives, light engineering, food and pharmaceuticals industries. While most of the large
industries are located outside the city limits, Indore provides a variety of services to support these industries, in addition to large hinterland. The occupation profile over three decades is
presented in the following table 8, which highlights the transformation.
Table 8: Occupational Profile of Indore
Sl. No. Sectors
1961 1971
1991
1 Primary Agriculture, forestry, etc
2.3 2.2
3.2 2
Secondary manufacturing 43.3
39.4 33.4
3 Tertiary Services and trade
54.4 58.4
63.4 Source: Indore CDP, 2006
A major shift from manufacturing to trade over 1971-91 decade is observed. The estimates of occupational profile derived from GIS enabled vulnerability survey analysis are presented in
the flowing Table 9.
Table 9: Indore occupational profile
Sl. No. Type
Slums Lower Middle Mixed Upper City Total
1 Unskilled vendor Hawker
30 17
7 7
2 Semi Skilled
46 30
12 5
1 14
3 Skilled workers
6 13
15 6
16 9
4 Govt Service Class III, IV
4 8
10 5
9 6
5 Govt Service Class I and II
2 7
12 10
9 6
Self EmployedBusiness 6
19 33
40 47
33
ACCCRN – City Vulnerability Assessment Report 48
Table 9: Indore occupational profile
Sl. No. Type
Slums Lower Middle Mixed Upper City Total
7 Professionals
3 12
28 14
18 8
Pension others 7
8 4
4 4
5
Total 100
100 100
100 100
100 Source: TARU Primary Study, 2009
Self employedbusiness includes a variety of scales ranging from petty shops to large businesses. Indore has disproportionately high proportion of households engaged in this
activity. Even the lower and slum SECs report significant proportion of this occupational class. Livelihood profile of sample settlements is presented in the Map Annexure F.
The income stability of households depends on size of monthly incomes, dependency ratio and also on ratio of stable to unstable income sources. With stable incomes the households
can venture into long term investments like housing, education and managing fiscal emergencies. Income Stability index was used to compare different socio economic groups
across the city. The distribution of income stability index across the SECs is presented in the following Table 10
Table 10: Estimates of Income stability index range across Socio economic classes in
Indore city
Sl. No.
Income- Stability-Index
Slum Lower
Middle Mixed
Upper Grand
Total
1 2-3
- 1
- -
- 2
3-4 22
18 21
- 5
17 3
4-5 43
34 8
26 18
19 4
5-6 23
20 43
61 22
39 5
6-7 10
22 13
- 14
12 6
7-8 1
4 12
13 36
11 7
8-9 -
- 3
- 5
2
Grand-Total 100
100 100
100 100
100 Source: TARU Primary Study, 2009
The income stability across different socio economic groups does not show significant differences across SECs indicating that even though the income levels may be low among the
slums and lower SECs, they have fairly satisfactory stability due to stability in incomes. This indicates that demand for lower skilled jobs is high enough to meet the market demands or
the dependency ratio is low in case of lower income groups.
It is quite common that most of the working age population among the lower SECs is engaged in economic activities. This however hides the fact that many of the lower SECs
may be spending significant part of their incomes to remit to the dependents living in their native villagestowns. At the same time, the higher SECs have larger dependency ratios with
some of the households engaged in unsteady incomes, but have the capacity to shift their activities more easily. Also they are likely to understate their incomes for various reasons.
The analysis indicates that nearly one sixth of the city’s households have less than four in terms income stability index, most of them from the slum, lower and middle income
ACCCRN – City Vulnerability Assessment Report 49
categories. Improving livelihoods for these socioeconomic categories will be critical under climate change scenarios that can potentially increase the supply of cheaper labor through
immigration from hinterlands, which will reduce the bargaining power of the poor with limited skill sets. The current high demands for skills like domestic work and construction
labor due to reduced migration caused by rural employment guarantee schemes may be temporary. It also raises the issue of higher skills and education needs identified under
education index reported earlier.
4.9.3 Social Capacity Index
