Rural development through Pradhan mantri awaas yojna:

challenges and prospect

A Term Paper Project Submitted

In Partial Fulfillment of the Requirements for the Degree of

Bachelor of Arts (honors in economics)

At

AMITY SCHOOL OF ECONOMICS AMITY UNIVERSITY

UTTAR PRADESH
Submitted By:

Submitted to:
AYUSH BANSAL

Enrollment No.- A6018221024

Ms. kavita Indapurkar
Programme – B.A. (Hons) - Economics
Amity School of Economics

Batch 2021-24

Candidate’s Deceleration
I hereby declare that the work, which is being presented in the Major Project/Seminar/Term
Paper, entitle “Rural development through Pradhan mantri awaas yojna: challenges and prospect”
in partial fulfilment for the award of Degree of “Bachelor of Arts (honors in economics)

Submitted to the Amity School of Economics, Amity University, Uttar Pradesh is a record
of my own investigations carried under the Guidance of Ms. Kavita indapurkar of Amity
School of Economics.
I have not submitted the matter presented in this report anywhere for the award of any other
Degree.

(Signature of Candidate)

Name of Candidate: Ayush Bansal

Enrolment No.: A06018221024

Programme/Semester: B.A. (H) Business Economics/3rd sem

Batch: (2021 – 2024)

(Counter Signed by)

Name of Faculty Guide: Dr. Kavita Indapurkar

Department- ASE

DECLARATION BY FACULTY SUPERVISOR

This is to certify that Mr. Ayush Bansal, Enrollment No. A06018221024 a student of

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BA(Hon.) Business Economics in, 2021-24 Batch, Amity School of Economics, Amity
University Uttar Pradesh, Noida has worked under my guidance and supervision for the
duration of the project.

The report being submitted incorporates original work and research and is being submitted
as a partial fulfillment for the Bachelor of arts (honors in economics)

Signature

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 ACKNOWLEDGEMENT
I would like to take this opportunity to express my profound gratitude and deep regard to
my Research Guide Ms. Kavita Indapurkar for her exemplary guidance, valuable
feedback and constant encouragement throughout the duration of the project. Her valuable
suggestions were of immense help throughout my research work. Her perceptive criticism
kept me working to make this research paper in a much better way. Working under her was
an extremely knowledgeable experience for me.

I would also like to give my sincere gratitude to all the friends and colleagues who filled in
the survey, without which this research would be incomplete.

Table of contents
S no. Topics Page no.

1. CHAPTER I - Introduction 5-6

2. CHAPTER II - PRADHAN MANTRI AWAAS YOJANA 6-7

(IAY)/INDIRA AWAAS YOJANA (PMAY

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3. CHAPTER III – LITERATURE REVIEW 7-8

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4. CHAPTER IV – STATEMENT OF THE ISSUE

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5. CHAPTER V - Description of the issue

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6. CHAPTER VI - CONCLUSION

Introduction:
Villages are where the heart of India beats since they are home to
approximately 70% of Indians. Rural development is a crucial strategy
for overcoming poverty and promoting economic success at the very
base of society. It might be characterized as structural modifications
to the socioeconomic circumstances of rural residents with low
incomes that enable their development to become self-sustaining. The
infrastructure amenities in the rural region, such as rural roads,
housing, irrigation, water supply, power, etc. The development of the
rural area reliesconnection in telecommunications, etc. Rural
infrastructure is crucial for growth as well as an essential component
inguaranteeing any long-term initiative to reduce poverty. The
appropriate development of the infrastructure improves the rural
economy and the quality of life of the populace. It also encourages the
use of the best resources, increased productivity, increased
agricultural revenue, sufficient employment, and overall sustainable
growth of the economy. Consequently, one of the crucial challenges of
development planning in India. In fact, it necessitates both
beneficiary-focused programmes and area-based development. To
improve rural areas, the federal and state governments have launched
a number of schemes and programmes through the Ministry of Rural
Development (MORD) and District Rural Development Agency

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(DRDA). The government invested heavily in the areas of technology,
telecommunications, rural connectivity, housing, water supply,
education, health, and poverty alleviation. At the village level, plans
and programmes for rural development are put in place to accomplish
these goals. The department of development and panchayat raj is in
charge of carrying out several federally and state-sponsored
programmes. In order to close the gap between urban and rural areas,
village panchayats have been given the authority to create
infrastructure facilities in rural areas. Housing is a fundamental need
for human survival and is one of the infrastructure components that is
most important. It offers a person in society tremendous financial and
social security. Low income households can significantly improve
their financial situation with housing aid. International development
forums have acknowledged the reality and emphasised it as a crucial
item on everyone's development agenda. The countries, especially
emerging and disadvantaged countries (. Consequently, this study
sought to explore the socioeconomic.

PRADHAN MANTRI AWAAS YOJANA (IAY)/INDIRA

AWAAS YOJANA (PMAY
After gaining independence, the Indian government recognized the
value of housing and began to take the necessary steps to ensure that
all rural households had access to housing. As a result, building
homes was listed as one of the main activities for the Rural Landless
Employment Guarantee Program (RLEGP), which was launched in
1983, and the National Rural Employment Programme, which started
in 1980. In 1985, the Indian government declared that a portion of
this revenue would be given to free bonded laborers, members of
Scheduled Castes and Tribes, and STs for the construction of housing.
Indira Awaas Yojana (IAY) was therefore introduced in 1985–1986 as
a sub–scheme of RLEGP, continued as a sub–scheme of Jawahar
Rozgar Yojana, and finally became an independent scheme in 1996.
Initially set at rs. 10,000v, the housing unit cost was increased to rs.
12,700 for plain areas and rs. 14,500 for difficult terrain in 1990. It
was raised to rs. 20,000 for plain areas and Rs. 22,000 for
challenging areas in 1996. Initially set at rs. 10,000, the housing unit
cost was increased to rs. 12,700 for plain areas and rs. 14,500 for

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difficult terrain in 1990. It was raised to rs. 20,000 for plain areas and
Rs. 22,000 for challenging areas in 1996. In 2004, rs.25,000 for the
simple area and Rs. 27,500 for the tough area. Initially set at rs.
10,000, the housing unit cost was increased to rs. 12,700 for plain
areas and rs. 14,500for difficult terrain in 1990. It was raised to rs.
20,000 for plain areas and Rs. 22,000 for challenging areas in 1996.
In 2004, rs. 25,000 for the simple area and Rs. 27,500 for the tough
area were allotted. Once more, the government increased the price of
a home by Rs. 35,000 for plain areas and Rs. 38,500 for2008's
challenging area The amount of money allocated for plain and
difficult terrain increased to Rs. 45,000 and Rs. 48,500, respectively,
in 2010.The Tamil Nadu government has raised additional incentives
for the cost of RCC roofing due to a significant increase in the price of
construction materials.
As per the estimation of planning commission of India housing
shortage under 12th five year plan can be assumed about 40 million.
Out of this, half of the current shortage of houses would finance
through IAY scheme and rest of the houses would be constructing
with the help of state schemes and self-reliance of households. Based
on the budget proposed by planning commission for rural housing
under twelfth five-year plan were allocated to Rs.1,50,000 crores. The
budget allocation for 2012-13 was rs.11,05 crores and rs. 15,184 crores
for 2013-14. Under IAY, the government has set a target of
constructing 38 lakh houses by end of the 2015-16, out of which 10
lakhs have been completed. The IAY has been restructures and
renamed as Pradhan Mantri Awaas Yojana – Garmin (PMAY-G) and
implemented from the financial year 2016 - 2017.

LITERATURE REVIEW

Despite almost 50 years of planning and construction, the goal of

providing inexpensive and appropriate shelter for everyone in India
has not yet been reached. The study came to the conclusion that
microfinance can contribute to greater inclusion in housing finance in
order to decrease homelessness and promote inclusive housing in
India. Through micro housing finance, the extensive network of
branches of commercial banks, including RRBs and HFCs, might be
used to provide cheap homes to low-income groups and the weaker
sectors of society. Sudipta Biswas (2015) assessed the Indira Awaas
Yojana's performance during the last decade or two in light of the
seriousness of the housing crisis in rural India. The program's
physical and financial performance is improving, and IAY's only
purpose is to give grants in accordance with budgetary allotments.
Concerns about rural housing must be addressed for everyone and
their scope must be increased by the provision of essential services

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including water, sewage, power, clean fuel, healthcare, and education,
as well as the creation of gainful jobs

Statement of the issue

India's rural areas continue to have a serious problem in overcoming
rural poverty, which has an impact on the country's overall
development. Rural areas are developing more slowly than
metropolitan areas because of inappropriate and insufficient
infrastructure availability. The population of rural areas migrates to
surrounding urban cities because urban areas are far superior at
developing and managing human settlements and providing the
necessary infrastructure. The bulk of the rural population still relies
on jobs related to agriculture for their livelihood, hence agriculture is
the main driver of the rural economy.
The government must therefore promote reverse migration by
offering basic services to rural residents through federal and state
programmes in order to improve agricultural productivity,
employment possibilities, per capita income, and living standards. It
is dependent upon infrastructural development to achieve these
advantages.
A third of the population, both in urban and rural areas, suffers from a
lack of housing options. Around 65 to 70 million families out of an
estimated 200 million families need suitable housing. Housing for
scheduled tribes, scheduled castes, and other economically and
socially disadvantaged groups Class households suffer little impact.
Therefore, meeting the demand for rural housing and addressing the
housing deficit, especially for the poorest, is an important goal. Vital
responsibility must be carried out as part of the government's efforts
to combat poverty (Planning Commission, 2013).

Description of the issue

India's rural areas continue to have a serious problem in overcoming
rural poverty, which has an impact on the country's overall
development. Rural areas are developing more slowly than
metropolitan areas because of inappropriate and insufficient
infrastructure availability. The population of rural areas migrates to
surrounding urban cities because urban areas are far superior at
developing and managing human settlements and providing the
necessary infrastructure. The bulk of the rural population still relies

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on jobs related to agriculture for their livelihood, hence agriculture is
the main driver of the rural economy.
The government must therefore promote reverse migration by
offering basic services to rural residents through federal and state
programmes in order to improve agricultural productivity,
employment possibilities, per capita income, and living standards. It
is dependent upon infrastructural development to achieve these
advantages.
Around 65 to 70 million families out of an estimated 200 million
families need suitable housing. Scheduled castes, scheduled tribes,
and other socially and economically underprivileged class families
have terrible housing circumstances. Therefore, meeting the demand
for rural housing and addressing the housing deficit, especially for the
poorest, is an important goal.

Conclusion
CONCLUSION
The national and state governments have increased their efforts to
make the rural sector more active, lively, and resilient by launching a
variety of new programmes. The issue of fulfilling the needs of the
rural population with low and marginal levels of economic
development presents a particular difficulty.

Employment and revenue generation support people's socioeconomic

growth both directly and indirectly. Identifying the

Housing is a fundamental human necessity, and as such, the

government has prioritized it ever since the first five-year plan.

Bibliography:

(1) Southern Economist, Ammannaya, K. K. (2008). Inclusive Housing

and Housing Micro Finance.
(2) Nazeer Uddin 2015. Rural development in transition: Global
trends. Journal of Agricultural Economics and Rural
Development.
(3) Paul van Linder and Peer Smits , 2016. Poor urban residents
and sustainable housing. Journal of Urban Sustainable
Development International
(4) Evaluation of the Panchayat Raj System in Karnataka, G.H.
Nagaraj, Southern Economist, 4 (2010)

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