India is a developing country in the world, where industrialization and urbanization is growing at a very fast pace but there is a downside to increase the number of slums in urban areas. An urban residential area with large number of populations containing high number of closely packed, decrepit housing units in a situation of deteriorated or incomplete infrastructure, inhabited primarily by impoverished persons is called slums. There are several different reasons for formation and growth of slums in different parts of Indian city. Rapid rural-to-urban migration, economic stagnation and depression, large number of unemployment, severe poverty, imbalance economy, forced or manipulated ghettoization, poor planning, politics, natural disasters and social conflicts are the main causes for development of slums. It works as a barrier to the urban economy, where environmental and cultural pollution is increasing from one of the other unplanned slums, on the other hand, by increasing its crime, urban poverty, ill-health, illiteracy and low living standard, in this condition their continuous development is not possible. It has profound effects on sustainable development of the cities. The positive effect of the slums is very partial, whereas the negative impact is very huge A total of 65.49 million slum inhabitants live in 13.92 million household in India are affecting to urban sustainable development. In the present investigation, data was collected from 20 slum houses of Mohalla Janakpuri after analyzing the data it was found that 90% of houses were earning less than 5000 rupees per month and a big part of employees were unskilled workers. Out of the total samples the percentage living below the poverty line was 25% and only 32% population was literate. During the study it was found that 5 children were working as child Labor. At local scales of Muzaffarnagar city the social and physical aspects were analyses and a more holistic analysis of the problem was done in this paper, which can potentially lead to a deeper understanding and consequently better approaches for tackling the challenge of slums. This research paper is a partial effort to analyze the impact of slums on quality of life and economic growth of the city.
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