11 OCTOBER, 2019

Indian Government launched Pradhan Mantri Awas Yojana – Gramin to provide affordable housing to the people living in rural India. Under this project, the Government is providing financial assistance to construct 3 crore houses in the rural areas of the country. United Nations Development Programme (UNDP) is also working along with the government to improve the condition of rural areas of India.

UNDP has partnered with the Ministry of Rural Development (MoRD) for Governance & Accelerated Livelihood (GOALS) project to promote affordable housing to economically backward people living in rural areas. The primary aim of this project is to provide houses with a range of choices in terms of designs, construction technologies and the materials. These houses are designed according to the local climatic conditions that would decrease the environmental impact of housing.

The Indian government believes that economically-empowered-self-reliant villages are the key to the overall development of the nation. In the last few years, the government has dedicated lakhs of crores to the development of the rural sector of India.

The development of the affordable housing sector in India is improving the lives of people living with insufficient resources as well as benefitting the local economy. The Government is also strategically working with private construction companies to support the rural economy of India. That is why major changes can be observed in the villages after the introduction of PMAY Scheme (Pradhan Mantri Awas Yojana).

The development of affordable houses on such a large scale in the rural sector of India is expected to create positive effects. Initial land development has generated jobs for architects, financiers and other related professionals. Moreover, as the building process of the housing units starts, plumbers, electricians, and specialised personnel are required. In other words, rural housing projects are generating more jobs for the people living in the same community as well as encourage other people to be a part of the community in order to fill the growing demand.

Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) was a popular scheme introduced by the earlier government. Under MNREGA, around 12 crore new job cards have been issued by the government. Approximately 97% of the job cardholders have received their payments directly in their bank accounts. The government is tracking the money spent on this scheme to confirm that the funds are spent judiciously and under supervision.

From building roads to affordable housing projects, the government is tracking every project undertaken. Moreover, the government has introduced innovative green initiatives such as the use of waste plastic, textiles, fly ash, iron and copper slag and cold mix in rural road laying. The projects make the work cost-effective as well as helps to solve the issue of local waste management. The Indian government is giving equal importance to the development of rural areas as urban areas. So, overall, it can be said that housing development is leading to positive impacts in the rural economy.

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