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POLICY REVIEW
Lakh jobs through effects industries belonging to 21 sector, one can get much
and 42.57 lakh jobs through broad sectors of the Indian bigger impact of housing
indirect effects (Table 4). economy. investments under PMAY
on employment creation,
Using the NIPFP methodology Estimation using NCAER especially for the unskilled
and extrapolating for the Methodology informal sector workforce.
PMAY latest data of 86.41 lakh The employment figure In addition, NCAER
houses which were grounded arrived at using the NIPFP methodology also enables to
upto 6 September 2021 with methodology shows the huge estimate the impact of housing
th
the estimated cost of Rs. 2.79 impact of housing investment investment on household
lakh crore, it can roughly be under PMAY for creation of income and Gross Domestic
estimated that around 2.50 employment opportunities Product (GDP) of the country.
crore jobs would have been in the urban areas. However, Table-5 depicts the estimated
created in the economy as a by using the methodology of impact of housing investment
whole, as a result of the inter- NCAER (2014) for residential under PMAY-HfA(Urban)
industry linkage of housing construction (housing) on employment, household
industry with about 130 other income and GDP.
Table 5: Impact of PMAY Investments
Impact Houses Total Employment Addition to Addition to
Grounded Investment (No. cr.) Household GDP (Rs.
(No. lakh) (Rs. lakh cr.) Income lakh cr.)
(Rs. lakh cr.)
Type-I 86.41 2.79 6.53 1.14 4.30
Type-II 11.3 2.12 7.93
Type-I 113.06 7.39 17.29 3.03 17.22
Type-II 29.93 5.62 37.76
Source: Own Estimates using multipliers of NCAER Study, 2014
As can be seen from Table-5, sector. Adding the induced units of 113.06 crore are
86.41 lakh houses were effects of housing investment grounded, total employment
grounded up to 6 September because of its inter-industry of 29.93 crore would be
th
2021 with the estimated cost linkages through the Type-II generated in the economy,
of Rs. 2.79 lakh crore. Using employment coefficient, the including 17.29 crore direct
the Type-I (direct & indirect total employment of 11.3 crore & indirect employment in
effects) employment co- would have been created in the housing industry itself,
efficient of 2.69 derived by the economy.Of this, around vast majority of which would
NCAER Study, it is estimated 11 crore jobs would have belong to the informal sector
that the investment of Rs. been for informal sector, as employment.
2.79 lakh crore would have it constitutes 97% of the total
generated direct employment jobs created. Further, when The NCAER Study also
of 7.51 crore in the housing the entire sanctioned housing estimates that for every
investment in the housing
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