Slum improvement and upgradation is followed as a strategy for urban poverty alleviation. It is unclear as to what the productivity pay-off of the investments were that such a strategy should entail, the critical issue being whether such investments were just a subsidy or did these bring about tangible social and economic gains. In this context, a pilot study of two slums in the city of Bhopal was undertaken - one upgraded and improved slum while the other without any improvements. In both these slums, the inputs that affect economic productivity were mainly access to water, sanitation and electricity. The areas of change were the change in demographic and social status, economic productivity and income status. The analysis supports the assumption that intervention in terms of physical upgradation of slums leads to enhanced productivity. Thus, the results of the pilot study bring out both the nature and extent of differences in the attributes stated above.