Macroeconomics Assignment - 3

Pradhan Mantri
Awas Yojna
Housing for All
 Introduction : Pradhan
Mantri Awas Yojna
The Pradhan Mantri Awas Yojana (PMAY) is a big plan by the Indian government that
started in 2015. It aims to give affordable homes to poor people in cities and villages.
This includes those who don't have much money, like the economically weaker
sections and people with low incomes. The mission wants to fix the problem of not
having enough homes in cities, especially for those who live in slums. By 2022, which
is when India turns 75, PMAY wants to make sure everyone who needs a home in
cities can get one. It's all about making sure everyone has a good place to live.

Purpose of the
scheme
Pradhan Mantri Awas Yojana (PMAY) was
launched by the Government of India on June
25, 2015, with a vision to address the critical
housing shortage and ensure affordable
housing for all citizens, particularly for the
economically weaker sections (EWS), low-
income groups (LIG), and middle-income
groups (MIG). The scheme is a flagship
program designed to achieve the following key
purposes:
Affordable Housing for All: PMAY aims to
bridge the housing shortage in India by
01.
providing financial assistance for EWS,
LIG, and MIG categories. This includes
subsidies on home loans and credit-linked
subsidies, making homeownership a
reality for many.
Improved Living Standards: The scheme
02.
goes beyond just building houses. It
focuses on improving the quality of life
for underprivileged communities by
providing safe and secure housing with
basic amenities. This includes slum
redevelopment initiatives for better living
conditions and infrastructure.
Inclusive Development: PMAY is a two-
pronged attack on housing issues, with
03.
programs for both urban (PMAY-U) and
rural areas (PMAY-G). This ensures
balanced development across the country
and fosters inclusive growth by bridging
the urban-rural divide.
Economic Revenue
By stimulating investments in the
real estate sector, PMAY-U
contributes significantly to
economic growth. The real estate
sector is a substantial contributor
to GDP, generating employment
opportunities and fostering
investments in ancillary industries
such as cement, steel, paints, and
furniture. This growth not only
boosts revenue but also enhances
the overall attractiveness and value
of infrastructure projects, further
fueling economic development.
Implementation
and Success
Update (Urban):
As of April 25, 2016, 2,508 cities and towns across
26 states were identified for construction, with an
additional 1,86,777 houses approved in February
2018. Cumulatively, 39,25,240 houses were
approved by then, including those from the
subsumed RAY scheme.

Update (Rural):
The PMAY-G, launched in November 2016 with a
target of 2.7 crore houses, has achieved a 67.72%
completion rate, with 1.8 crore houses constructed
as of now.
PMAY Status
Precise Progress (Urban):
Chhattisgarh: 1,000 cities/towns
Jammu and Kashmir: 19 cities/towns
Jharkhand: 15 cities/towns
Madhya Pradesh: 74 cities/towns
Haryana: 53,290 houses in 38 cities and
towns with an investment of ₹4,322 crore by
February 2018.
Precise Progress (Rural):
Target: 2.7 crore houses
Completion Rate: 67.72%
Houses Constructed: 1.8 crore
Both PMAY (Urban) and PMAY-G have made significant
strides in housing construction, with PMAY-G showing a
higher completion rate compared to its urban
counterpart. While challenges remain, these initiatives
have positively impacted housing accessibility,
particularly for economically disadvantaged segments,
contributing to improved living standards and socio-
economic development.
 Challenges:
1. Land Availability: Scarce land resources, particularly in
densely populated cities like Mumbai, pose a significant
challenge.
2. Housing Demand and Supply Gap: PMAY-U's demand-
driven approach revealed a lower validated demand of
about 1.12 crore houses, creating a gap between
estimated and actual needs.
3. Horizontal Sprawl: Stringent Floor Space Index (FSI)
norms contribute to horizontal sprawl, hindering
infrastructure development and efficient land use.
4. Urban Governance Reforms: Reforms such as easing
permission requirements for non-agricultural land use
and amending rental laws are crucial for achieving the
'Housing for All' goal by 2022-23.
5. Increased Heat Gain: The extensive use of cement and
steel in housing projects without proper insulation can
lead to increased heat gain, posing a challenge for
sustainable urban development.
 01. 02.
The first suggestion we would To make the selection process
like to give is to actually not of the scheme better, a
country wide blockchain or
keep ambitious goals and

Suggested
digi locker system must be set
make unachievable promises up, where the eligibility can
as a part of the scheme. be identified in a must faster

Steps to be
way.

We as a country have all

taken
. ready showcased that we can
achieve country wide sourcing

03.
of information with the
success of Aadhar Card,
today close to 97% Indians
have an Aadhar card. A
To encounter the issue of similar nation wide
affordability concerns, the information sourcing on
income and other information
government should either increase
can be done and be put in digi
the amount/subsidy given to each locker or a blockchain. This
person by the real estate sector would not only help in the
inflation or by the divide in the implementation of this
purchasing power parity. scheme but many more
scheme to come.
 Submission By Group 3

Thank you
very much!