The objective of this research is to investigate to what extent the existing production of space in informal settlements is related to its social ties and economic needs, and how it can be incorporated into a strategic framework for future redevelopment schemes. This stems from the meteoric rise of informal settlements in the global south, despite several redevelopment projects and policy attempts. The selected case study is Dharavi, located in Mumbai, India. This research, through a comprehensive analytical framework in Dharavi reveal strong correlation between the economic livelihoods and networks and the existing social structure. What is also revealed is the lack of policy in the current redevelopment that addresses the pre-existing economic networks and thereby its social structure. In order to approach redevelopment of informal settlements such as Dharavi, in a more inclusive and sustainable manner, this project aims to use the hypothesis of ‘economic clustering’ in order to ‘reframe’ and develop a strategic framework for Dharavi. The strategic framework is then texted through a design framework echoing the same elements at a selected site (13-compound) inside Dharavi. The frame of ‘economic clustering’ offers a reframe on the traditional model of redevelopment in informal settlements in India and perhaps extending to the global south. Most informal settlements in the geographical realm of the global south, have distinct economic patterns and social networks which play a vital part in their existence and contributing to their perseverance. The proposed model of redevelopment aims to address and examine the existing economic networks incorporating them into a framework that provides a balanced combination of spatial guidelines and policy recommendations.