Affordable housing is a critical issue in India, especially considering the country’s vast and growing population. Addressing this issue involves understanding various government measures, economic factors, and the distinction between affordable and low-cost housing. This article delves into these aspects to provide a comprehensive view of the affordable housing scenario in India.
Government Initiatives and Economic Measures for Affordable Housing
The Indian government has promoted affordable housing for urban migrants and the economically weaker sections (EWS) through initiatives like the Pradhan Mantri Awas Yojana (PMAY). PMAY provides affordable rental housing complexes for migrant laborers, the urban poor, and students, converting government-funded houses into rental units.
The Modi government has implemented key policies such as the Real Estate (Regulation and Development) Act (RERA) and the Goods and Services Tax (GST) to enhance transparency and organization in the real estate sector. Additionally, the government is upgrading infrastructure through affordable housing corridors and smart city plans.
Economic measures include a Rs 50,000 crore fund to ensure liquidity for developers and the completion of affordable housing projects. This includes Rs 540 crore for 14 projects and partnerships with private builders. A Rs 25,000 crore fund was approved to revive stalled housing projects. Tax benefits and reduced GST rates further incentivize affordable housing, with GST on under-construction affordable homes reduced from 8% to 1%.
Affordable Housing vs. Low-Cost Housing
Affordable housing is defined by the ratio of housing expenditure to household income, designed for lower and middle-income groups (LIG and MIG). These units, ranging from 300 to 800 square feet, provide essential services and high-quality construction at affordable prices.
Low-cost housing targets the Economically Weaker Section (EWS) and is typically found in peripheral city areas. These units are smaller, often under 300 square feet, and offer basic amenities with minimal facilities, focusing on cost reduction.
Conclusion
India’s affordable housing landscape is shaped by government initiatives, economic measures, and the clear distinction between affordable and low-cost housing. The government’s collaboration with private builders and international funds underscores its commitment to providing quality housing for all, enhancing living standards, and fostering economic growth.
Dr. Adv. Harshul Savla
Managing Partner – M Realty
Chairman – Statistics & Research, CREDAI National
