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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 V olume 22 No. 2 - SHEL TER 49
October 2021 Volume 22 No. 2 - SHELTER
