The socio-economic condition of the slum dwellers is generally poor because of the lack of basic social amenities; functional skills, proper education, a source of income, hygiene, and health resources. However, slum dwellers directly or indirectly play an important role in nation-building. With this point of view, the study of slum dwellers becomes important. This paper attempts to demonstrate the theoretical ideas relating to the socio-economic conditions of slum dwellers and their reasons and to extend appropriate measures for the improvement in the conditions of slum dwellers. Since, slum dwellers are the stock of the potential human resource, it can be developed through skill enhancement programs initiated by the government and through appropriate public action relating to social provisions and redistribution social amenities. This paper is conceptual and based on detailed literature collected from various sources like books, research articles, NSSO reports, the Census of India, etc. Lastly, this paper suggests effective measures to minimize the problems and raise the living conditions of the slum dwellers.