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POLICY REVIEW
number of jobs created would of 1 unit in the final demand and promoting inclusion
be 4.06 (3.95 informal and of housing translates into at all levels.In this context,
0.11 formal) in the economy induced cumulative revenues the role of Govt. of India’s
(Table-2), out of which over of 5.11 units in the economy. flagship mission of ‘Pradhan
97 per cent are jobs in the The type-I income multiplier Mantri Awas Yojana-Housing
informal sector. The role of for All -Urban’ (PMAY-
housing for creation of jobs for housing sector is 1.54 and HfA-U) assumes much
for the informal sector is very type-II is 2.84. This would more significance in not
important considering the mean that a unit of increase only ameliorating the urban
fact that the informal sector in the final expenditure in housing shortage in the
is the backbone of India’s the housing sector would country but also acting as an
economy. The type-I output generate additional income engine of economic growth
multiplier for housing sector as high as 3 times the income through the provision of more
is 2.33 and type-II is 5.11, generated within the housing employment, income and
which means that an increase livelihood support.
sector itself.
AFFORDABLE
Table-2: Multipliers of Investment in Housing Sector
HOUSING OPTIONS
Multiplier Type-I Type-II UNDER PMAY- HFA (U)
(Direct & (Direct, Indirect Provision of affordable
Indirect & Induced housing has always
effects) effects) remained a priority area of
Employment Multiplier 1.15 1.73 the government of India. In
fact, since our Independence,
Income Multiplier 1.54 2.84 recognizing the crucial role
Output Multiplier 2.33 5.11 of housing development
for planned and holistic
Employment Coefficient 2.69 4.05 development of the country,
a large number of housing
Source: NCAER Study, 2014
schemes are being operated
for all segments of the
The NCAER, 2014 Study household income increases society, with particular focus
further estimates that every by Rs. 0.41. With induced on adequate and affordable
additional rupee invested in effect, this is estimated to be housing for weaker sections
the housing sector is expected Rs. 0.76.Housing construction and lower income groups of
to add Rs. 1.54 to the GDP and also helps in supplementing the society.
with household expenditure agricultural income of the
considered, this is going to seasonal migrant labour. In an effort to address the
add Rs. 2.84. Further, for every challenges of urban housing
rupee invested in creation All these figures show the shortage through a set of
of housing, Rs. 0.12 gets significance and relevance policies and incentives so as
collected as indirect taxes. of putting housing at the to bridge the gap between
The Study also established centre of urban agenda at price and affordability,
that for every investment in national, state and local the Government of India
the housing sector/ every level for stimulating the launched its flagship program
unit of housing created, the economy, reducing poverty ‘Pradhan Mantri Awas
October 2021 Volume 22 No. 2 - SHELTER 51
