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POLICY REVIEW




               ECONOMICS OF HOUSING & PMAY-HFA


                                                                                       (URBAN)




              - Impacts of Housing Investment on Employment, Income & GDP







           DR. AKSHAYA                        The role of housing as a growth   core  sector  in  the  economy
                                                          has
                                              accelerator
                                                                       well
                                                                been
                                                                              having strong ‘backward’ and
           KUMAR SEN                          established with its strong     ‘forward’ linkages with other
                                              inter-industry  linkages  that  industries in the economy.
                                              create  greater   employment    In India, it is estimated that
                                              opportunities,       generate   construction sector has inter-
                                              more income and help in         industry linkages with 250
                                              macroeconomic stability.  This   ancillary  industries  with
                                              paper attempts to analyze       strong   multiplier    effects
                                              and estimate the impact of      on generation of income
           “The impact of PMAY-               housing  investment  under  the   and employment in Indian
           HfA(urban) on the provision        Government  of  India’s  flagship   economy.  As explained by
                                                                              John F.C. Turner (1972), it
                                              Mission  of  ‘Pradhan  Mantri
           of affordable housing has          Awas Yojana-Housing  for All    is  the  use  of  ‘housing  as  a
           been well documented. It has       -Urban’  (PMAY-HfA-U) on        Verb’ which means housing
           not only provided roof over        employment, income and Gross    as a  ‘process’ or  ‘activity  of
           the head of those who needed       Domestic Product (GDP) of the   housing’ that is responsible for
           it, but also provided gainful      country.                        creating the chain of activities
           employment  and  income to                                         through the backward and
           vast majority of workforce,        INTRODUCTION                    forward linkages with other
           particularly  those in  the        There is a growing and large    industries in the economy,
           informal sector.”                  body of evidence on the         thereby     creating    more
                                              economic  role  of  housing  in   employment   and    income
                                              not only helping people meet    opportunities.      Housing,
                                              their  housing    aspirations   therefore, matters in macro-
                                              but also in helping deliver     economic    terms,    having
                                              macroeconomic        stability  strong income, employment
           Key Words: Multiplier, PMAY,       and more flexible labour        and output multipliers.
           Employment, Income, GDP            markets. The housing sector
                                              has  been  a  catalyst  for     IMPACT OF
           Dr. Akshaya Kumar Sen (aksen@      sustainable urbanisation as     CONSTRUCTION
           hudco.org) is Joint General        well as national economic       SECTOR INVESTMENT
           Manager(Economics) & Fellow at     growth  and is  seen  as a
           HUDCO’s HSMI, New Delhi.                                           As per an estimate (Dholakia



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                                                           October 2021 Volume 22 No. 2 - SHELTER
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