Housing Crisis of India

Published: 13th May, 2024

Context

Amidst the diverse issues facing the nation, one recurrent issue is the housing crisis in India. With million homeless individuals, and concerns persisting even among those with homes regarding quality, congestion, and insufficient amenities and infrastructure, housing emerges as a pressing concern for the public.

Status of India’s Housing Crisis

India has about 1.7 million homeless people, as per the 2011 Census. Even those with homes face issues like poor quality, overcrowding, and lack of amenities.
A 2012 government report estimated a need for around 18.78 million more houses in India.
A 2020 study by ICRIER found that India's urban housing shortage increased by 54% from 2012 to reach 29 million in 2018.
This shortage includes homeless individuals, inadequate housing, obsolete homes, and crowded households.
Reasons for the Crisis:
- Inadequate housing conditions, reduced land entitlements, rapid urbanization. Issues like high land costs, escalating construction material prices, and lack of affordable housing options contributed to the problem.
- India’s housing crisis in India reflects systemic challenges in urban planning, infrastructure development, and policy implementation.
Impact of Housing Shortage:
Urban congestion and the proliferation of slums are direct consequences of the housing shortage.
Slum dwellings account for a significant portion of the urban population

Significance of the sector for Economy

Housing is important for the Indian economy.
The real estate sectoris responsible for about 50% of the economic output in the country.
The Ministry of Statistics notes thatmore than one-third of all gross fixed capital formation in 2021-22 could be attributed to housing and building construction.

Fact Box:

Affordable housing: The government defines affordable housing as properties with an area no bigger than 60 square meters, priced at a maximum of ?45 lakh.
Fundamental: The Supreme Court has ruled that the right to housing is a fundamental part of the right to life under Article 21 of the Constitution.

Government Interventions

The Housing for All schemes (2015-22): Under it, there are two wings- Pradhan Mantri Awas Yojana (Gramin) and Pradhan Mantri Awas Yojana (Urban).

	PMAY-U	PMAY-G
Launched in:	2015 to tackle urban homelessness.	2016
Target:	houses for 1.18 crore families by December 2024.	to construct 2.95 crore houses
Achievement:	As of March 2024, it has only achieved around 67% of its target, i.e, around 80 lakhs.	As of April 30, 2024, a total of 2.6 crore houses have been completed.
Verticals	Affordable Housing-in-Partnership (AHP) In-situ Slum Redevelopment (ISSR) Beneficiary-Led Construction (BLC) Credit-Linked Subsidy Scheme (CLSS)

PYQ

Q: What is the meaning of the term ‘tax expenditure’? Taking the housing sector as an example, discuss how it influences the budgetary policies of the government. (2013)

CURRENT AFFAIRS FOR UPSC IAS

Housing Crisis of India

Status of India’s Housing Crisis

Significance of the sector for Economy

Fact Box:

PYQ