Economic opportunities - Chances for people to improve their standard of living through employment.
Formal economy - This refers to the type of employment where people work to receive a regular wage and are assured certain rights e.g. paid holidays, sickness leave. Wages are taxed.
Informal economy - This type of employment comprises work done without the official knowledge of the government and therefore without paying taxes. It is common in many LICs.
Social opportunities - Chances for people to improve their quality of life, for instance access to education and health care.
Squatter settlement - An area of poor-quality housing, lacking in amenities such as water supply, sewerage and electricity, which often develops spontaneously and illegally in a city in an LIC.
Mumbai can be found in Maharashtra state in the West of India. It is not the most populous of Indian cities but it is one of the most important economically and culturally. Mumbai is a MEGACITY, with a population of over 12 million people!
Its Geographic location (see map) is very significant, as it is on a major shipping route through the Mediterranean Sea via the Suez Canal, along with other shipping routes. It also has a major airport and is connected to other Indian cities via railway and road links.
Its location attracted fishermen initially, then British Colonisers and was the ideal place for a port, as Mumbai is built on an island with a river estuary to the East, protecting the ships from waves in the Indian Ocean when in dock.
Mumbai's international links
Mumbai is a city of contrasts, being one of the richest cities in Asia but also home to some of the world’s poorest people. It accounts for 6% of India's GDP, 40 % of foreign trade, and 25% of industrial production. In total, the city creates US$10 billion in corporate taxes and its per-capita income is higher than the national average.
It is also the entertainment, fashion and commercial centre of India. It is also one of the world's top 10 centres of commerce in terms of global financial flow. It also has the headquarters of a number of Indian financial institutions such as the Bombay Stock Exchange and the Reserve Bank of India, and numerous Indian companies such as the Tata Group. Most of these offices are located in downtown South Mumbai which is the nerve centre of the Indian economy.
Many foreign companies also have their branches in the South Bombay area. Mumbai is the world's 29th largest city by GDP.