HOUSING CRISIS IN INDIA
- GS I AND II MAINS
News: The poll promise of affordable
housing
What's in the news?
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The issue of affordable housing remains a major
challenge in India.
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According to 2011 Census, India has around 1.7
million homeless people who are in dire need of affordable housing.
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The quality of build, congestion and inadequate
infrastructure remains a major concern for even those people with houses.
Affordable Housing:
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According to the definition of government,
affordable housing properties are those properties with an area not more than
60 sq.m and their price capped at ₹45 lakh.
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The right to housing has been held to be a part of
the fundamental right to life under Article 21 of the Constitution by the
Supreme Court.
Requirement of
Affordable Housing in India:
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According to a Government of India report in 2012,
an estimated 18.78 million more houses were required to cater to the housing
demand in the country.
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A study done by the Indian Council for Research on
International Economic Relations (ICRIER) in 2020 has found that India’s urban
housing shortage rose by 54% from 2012 to become 29 million in 2018. (This
included homeless populations, inadequate houses that could not be upgraded,
obsolete houses and congested households).
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According to the 2011 census, about 5% of India’s
total population (over 65 million people), lived in slums.
Government Initiatives
of Affordable Housing:
1. Indira Awaas Yojana:
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Indira Awaas Yojana was the first policy
intervention, which came from the Government in 1985. It focused on rural
housing
2. JNNURM:
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Jawaharlal Nehru National Urban Renewal Mission (JNNURM),
was launched in 2005, with focus on urban housing.
3. Rajiv Awas Yojana and
Rajiv Rinn Yojana:
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These urban housing interventions were launched in
2008, based on the Parekh Committee report.
4. Housing for All
schemes (2015-22):
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Pradhan Mantri Awas Yojana (Gramin) and Pradhan
Mantri Awas Yojana (Urban) are the two wings under the Housing for All schemes
(2015-22).
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Pradhan Mantri Awas Yojana (Urban) - It was launched in
June 2015 to tackle urban homelessness. PMAY-U promised houses for 1.18 crore
families by December 2024. However, as of March 2024, it has only achieved
around 67% of its target-around 80 lakh.
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Pradhan Mantri Awas Yojana (Gramin) - It was launched in
2016 with the aim of constructing 2.95 crore houses. The scheme offers ₹1.3
lakh for each unit constructed under the scheme, with a 60:40 funding split
between the Centre and State. As of April 30, 2024, a total of 2.6 crore houses
have been completed.
5. Scheme of Andhra
Pradesh State Government:
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The Andhra Pradesh government has undertaken
schemes such as the Navaratnalu-Pedalandariki Illu.
Challenges in Affordable
Housing Sector in India:
1. Non-achievement of
Targets of PMAY(U) and PMAY(G):
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PMAY(U) promised houses for 1.18 crore families by
December 2024. However, as of March 2024, it has only achieved around 67% of
its target-around 80 lakh.
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There are several constraints attached to these
schemes, such as PMAY(U) is applicable only for families having access to
capital and land, and not for urban landless poor.
2. Higher Cost of
Affordable Housing Units:
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The high cost of land and construction materials
make affordable homes economically unviable for low-income people.
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The low-income class cannot afford the house
without subsidy.
3. Unaffordability of
Vacant Units:
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According to an analysis done by the Centre for
Social and Economic Progress of the 2011 Census data, despite the urban housing
shortage of 19 million units, there are 11 million vacant units.
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However, these vacant units are unaffordable for
the lower middle class.
4. Limited Availability
of Low-Cost Land:
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Scarcity of suitable low-cost land within city
limits poses a significant challenge for the development of affordable housing
projects.
5. Lack of Easy Access
to Finance:
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The affordable housing developers lack the access
to institutional finance for affordable housing development.
6. Delays on the Part of
Affordable Real Estate Developers:
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The real estate developers operating in the
affordable housing sector suffer from the challenges of lengthy approval
procedures, multiple clearances and thin profit margins. These contribute to
delays and hamper the swift execution of projects.
Way Forward:
1. Addressing Demand
Side Constraints:
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The provision of subsidies, funds for affordable
infrastructure development and provision of basic services/amenities around
these housing projects, will help in rejuvenating the affordable housing sector
in India.
2. Matured Rental Market
for Affordable Housing:
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Development of a matured rental market that
specifically enhances the robustness of affordable rental housing will enable
the holistic development of the affordable housing sector.
3. Promotion of Rental
Vouchers:
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The National Urban Rental Housing Policy’s rental
voucher scheme must be implemented more broadly to help urban poor and migrants
afford private rentals in suitable locations.
4. Administrative
Efficiency:
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The regulatory authorities must proactively speed
up the process of regulatory clearances for the affordable housing projects, to
spur growth in this sector.
5. Increase Focus on
Urban Housing Needs:
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We must also aim to redirect some resources from
rural to urban housing projects.
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This will support the workforce in urban and
semi-urban settings, and would in turn enhance labour mobility and economic
productivity.
Policy reforms for the affordable housing sector should be participatory.
They must also take into account other stakeholders and the reality of the real
estate market.