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Rakhial was initially a home for industrial hub which was once dominated by the textile industries which have been taken over by steel, metal and machinery industries. People of Rakhial are majorly Migrants from other parts of India. Due to the Industrial boom during 19th century and also the Railway connectivity to Ahmedabad, people started settling around these industrial areas. Rakhial was transformed as a result to these events in the past. Even today the informal settlement and stagnancy of the place shows the congestion and high population density of lower income group around the old walled city.