Housing Scenario & policy in

India
N R Mandal
 Role of Housing
Housing is a very basic requirement for all. It also holds the key to accelerate
the pace of development. Investments in housing like any other industry, has
a multiplier effect on income and employment. It is estimated that overall
employment generation in the economy due to additional investment in the
housing/construction is eight times the direct employment (IIM-Ahmedabad
Study, 2000). The construction sector provides employment to 16% of the
work force (absolute number 146 lakh-1997). It is growing at the rate of 7%.
Out of this, the housing sector alone accounts for 85.5lakh workers. However
nearly 55% of them are in the unskilled category. Housing provides
employment to a cross-section of people which importantly include poor.
Housing also provide opportunities for home-based economic activities. At
the same time, adequate housing also decides the health status of occupants.
Therefore, on account of health and income considerations, housing is a very
important tool to alleviate poverty and generate employment.
 Population Projections for India by
Government of India & the UN

1.8
Govt. of India
1.6
Population in Billion

1.4 UN
1.2
1
0.8
Note:
0.6 Projections by Govt. of
0.4 India assumes 0% rate of
0.2 growth by 2051.
0
2011 2021 2031 2041 2051 UN projections also
Year indicate stabilization by
2050
 Comparative Growth Projections of Rural & Urban
Populations in India [by UN]
1000.00
Po p u latio n in M illio n s

900.00 Rural
800.00 Population
700.00
Urban
600.00 Population
500.00
400.00
300.00
200.00
100.00
0.00
2010 2020 2030 2040 2050
Year
% a g e o f T o ta l P o p u l a tio n

80.00
70.00
60.00
50.00
Rural Population
40.00
Urban Population
30.00
20.00
10.00
0.00
2010 2050
Year
Observed Trend in Growth of Residential Buildings in
Rural India
35
y = 0.2696x 2 - 0.9506x + 17.382
R ural Hous es / 100 R ural

30
R 2 = 0.7439
25
P opulation

20
S eries 1
15
P oly. (S eries 1)
10
5
0
0 2 4 6 8 10
Ye a r

• Decadal census data [1971, 81, 91, 2001] reveal that number of
rural houses per 100 rural population is increasing
• The observed trend has been used to forecast the future growth of
residential buildings in rural India using trend line and future
population projections [UN]
Observed Trend in Growth of Residential Buildings in
Urban India
35
y = 0.1903x 2 - 0.8809x + 6.7357
30 R 2 = 0.9932
Urban population/ Urban
res idential building

25

20
S eries 1
15

10 P oly.
(S eries 1)
5

0
0 5 10 15
Ye a r

 Decadal census data [1971, 81, 91, 2001] reveal that number of persons
per building is increasing [apartments / slums]
 The observed trend has been used to forecast the future growth of
residential buildings in urban India using trend line and future
population projections [UN]
 Projected Growth of
Housing Sector in India [based on present trends]

350.00
300.00
Number of Residential
Buildings in Millions

Rural Residential
250.00
Buildings
200.00 Urban Residential
150.00 Buildings
Total
100.00
50.00
0.00
2001 2010 2020 2030 2040 2050
Year
 Housing Scenario

• Growth of slums in India has been at least 3 times higher than the
growth of urban population, leading to sizeable number of urban
population living in slums.
• As per TCPO estimate 2001, 21.7 percent urban population lives in
slums.
• As per Planning Commission estimates, the total requirement of
urban housing during the 10th Plan period (2002-2007) worked out
to 22.44 million D.U.s in urban areas consisting of urban housing
backlog of 8.89 million D.U.s at the beginning of 10th Plan (2002)
and additions of new housing of 13.55 million D.U.s.
• As per Census 2001, the period of 1991 to 2001 witnessed a net
addition of 19.52 million D.U.s in the urban housing stock,
amounting to average annual construction of 1.95 million houses.
 Housing Scenario

• The share of ownership housing in urban areas has

increased from 63% in 1991 to 67% in 2001 (Census,
2001).
• Households having one room accommodation declined
significantly in urban areas from 39.55 per cent to 35.1
per cent during the period 1991 to 2001 (Census,
2001). This is a result of upward shift of
accommodation and accelerated supply of housing
stock.
 NSS 58th Round
Housing Condition in India -2002
• The average number of household members was 5.15 in rural
areas and 4.47 in urban areas.
• Out of every 100 households in rural areas, 36 lived in pucca,
43 in semi-pucca and 21in katcha houses. On the other hand,
out of every 100 households in urban areas, 77 lived in pucca,
20 in semi-pucca and only 3 in katcha structures. In urban
slums, 67% of the dwelling units were pucca.
• On an average, a rural household occupied 38 sq.m. of floor
area and an urban household occupied 37 sq.m.
• Per capita floor area available was lowest in the urban slums
(4.6 sq.m.) followed by the rural areas (7.5 sq.m.) and 8.4
sq.m. in other urban areas.
 NSS 58th Round
Housing Condition in India -2002
• Out of every 100 structures, 19 in the rural areas and 11 in
the urban areas were in bad condition and required
immediate major repair.
• With respect to the availability of drinking water, electricity
and latrine, about 15% dwelling units in urban slums and 11%
in rural areas had all the 3 facilities within their premises. At
the other extreme, none of these facilities were available in
about 30% of the DUs in the rural areas, 11% of DUs in the
slums & squatter settlements and 4% of units in other urban
areas.
• Around 76% of rural and 18% of urban households (32% in
urban slums) did not have access to any latrine facility.
 NATIONAL URBAN HOUSING AND HABITAT POLICY- 2005
[Ministry of Urban Employment & Poverty Alleviation]

The Need for Policy

Shelter is one of the basic human needs just next to food and clothing.
Need for a National Housing and Habitat Policy emerges from the growing
requirements of shelter and related infrastructure. These requirements
are growing in the context of rapid pace of urbanization, increasing
migration from rural to urban centres in search of livelihood, mis-match
between demand and supply of sites & services at affordable cost and
inability of most new and poorer urban settlers to access formal land
markets in urban areas due to high costs and their own lower incomes,
leading to a non-sustainable situation. This policy intends to promote
sustainable development of habitat in the country, with a view to ensure
equitable supply of land, shelter and services at affordable prices.
 Goal of NUHHP-2005:

The ultimate goal of this Policy is to ensure sustainable

and inclusive development of human settlements
including “shelter for all” and a better quality of life to
all citizens using potential of all the stakeholders.
 NUHHP- 2005 : Contents
• Preamble
[Discussions on: The Need for Policy, Rural to Urban Shift of Labour Force,
Regional Balance, In-situ Urbanization, Role of Housing, Housing
Requirements, Magnitude of Poverty, Sustainable Habitat, Policies /
Programmes and results, Focus Areas]
• Aims
• Role of Government and other Agencies
[Of: Central Govt, State Govt, Urban Local Govts/ Development
Authorities, Housing Finance Institutions, Public agencies / para-
statals, Private and Cooperative Agencies, R & D Organisations
• Specific Action areas
[Policies for: Land, Finance, Legal & regulatory reforms, Technology
support & its transfer, Infrastructure, Sustainability concerns,
Employment issues in the housing sector, Slum improvement and
up-gradation]
• Action Plan / Follow Up
 NATIONAL URBAN HOUSING AND HABITAT POLICY- 2005
[Aims]
The Housing & Habitat Policy aims at :
(i) Creation of adequate housing stock both on rental and
ownership basis.
(ii) Facilitating accelerated supply of serviced land and housing
with particular focus to EWS and LIG categories and taking
into account the need for development of supporting
infrastructure and basic services to all categories.
(iii) Facilitate Up-gradation of infrastructure of towns and cities
and to make these comparable to the needs of the times.
(iv) Ensuring that all dwelling units have easy accessibility to
basic sanitation facilities and drinking water.
(v) Promotion of larger flow of funds to meet the revenue
requirements of housing and infrastructure using innovative
tools.
 NATIONAL URBAN HOUSING AND HABITAT POLICY- 2005
[Aims]

(vi) Providing quality and cost effective housing and shelter options to
the citizens, especially the vulnerable group and the poor.
(vii) Using technology for modernizing the housing sector to increase
efficiency, productivity, energy efficiency and quality. Technology
would be particularly harnessed to meet the housing needs of the
poor and also specific requirements of `green’ housing.
(viii) Guiding urban and rural settlements so that a planned and
balanced growth is achieved with the help of innovative methods
such as Provision of Urban Amenities in Rural Areas (PURA) leading
to in-situ urbanisation.
(ix) Development of cities and towns in a manner which provide for a
healthy environment, increased use of renewable energy sources
and pollution free atmosphere with a concern for solid waste
disposal, drainage, etc.
 NATIONAL URBAN HOUSING AND HABITAT POLICY- 2005
[Aims]

(x) Using the housing sector to generate more employment and

achieve skill up-gradation in housing and building activity,
which continue to depend on unskilled and low wage
employment to a large extent.
(xi) Removing legal, financial and administrative barriers for
facilitating access to tenure, land, finance and technology.
(xii) Progressive shift to a demand driven approach and from a
subsidy based housing scheme to cost recovery-cum-subsidy
schemes for housing through a pro-active financing policy
including micro-financing, self-help group programmes.
(xiii) Facilitating, restructuring and empowering the institutions
at state and local governments to mobilize land and planning
and financing for housing and basic amenities.
 NATIONAL URBAN HOUSING AND HABITAT POLICY- 2005
[Aims]
(xiv) Forging strong partnerships between private, public and
cooperative sectors to enhance the capacity of the
construction industry to participate in every sphere of
housing and urban infrastructure.
(xv) Meeting the special needs of SC/ST/disabled/freed bonded
labourers/ slum dwellers, elderly, women, street vendors and
other weaker and vulnerable sections of the society.
(xvi) Involving disabled, vulnerable sections of society, women
and weaker sections in formulation, design and
implementation of the housing schemes.
(xvii) Protecting and promoting our cultural heritage,
architecture, and traditional skills.
(xviii) Establishing a Management Information System in the
housing sector to strengthen monitoring of building activity in
the country.