I understand that there are slums, ugliness, poverty and injustice in other parts of the world as well. The basic premise of the movie revolves around fate, destiny and true love for which India is well known. India is the land of destiny and thats why it was chosen as the location for the movie. Secondly the word slumdog is used as a synonym for underdog. I do not think there was any intentions of offending anyone in using this particular word in the movie title. The word slumdog is primarily used to illustrate that Jamal's is at a disadvantage to answer all the questions properly since he is not well educated.