Key Challenge For A Budding Country Like India Is Urban Migration
India is a rapidly urbanising country facing development challenges connected with speedy growth. One of the key challenges for a budding country like India is urban migration, which is further exacerbated by restricted resources to meet intensifying housing demands. The high percentage of labour immigration from rural areas to cities has contributed to urban congestion, pressure on basic amenities such as water and sanitation, etc, and most of all, housing shortages in cities across India.
Further, the country’s total urban housing deficiency is anticipated to be about 30 million by 2022. This constantly increasing gap between demand by urban migration and supply in the affordable housing section is forcing the public to live in slums and informal settlements. It is understandable that the subject, if not dealt capably, can have a marvellous negative impact on the country’s financial growth and poverty reduction efforts.
Real Estate developers and private players are focusing mainly on MIG and HIG segments due to the higher returns from these projects. On the other hand, high land costs, interruption in project approvals, rising raw material costs and low-profit margins have made low-cost housing projects less attractive to the private developers. Also, housing, as well as Affordable Housing being a state subject creates complexities in implementation because of unstable financial condition of development authorities, state/ city-level agencies and their restricted capacities in supervision in these projects.
To fruitfully build India’s Affordable Housing, a partnership between the central government ministries, state governments, urban local bodies, civil society, the private sector, and financial organization is essential. The combined schedule must go forward with the efficiency of affordable housing sector at an optimally low cost while maintaining security standards and basic facilities. To mainstream affordable housing, the government needs to principally act as an enabler for growth and be concerned in facilitating investments, both public and private, and shake-up processes across the value chain.
Housing in India varies significantly and can reproduce the socio-economic mix of its vast population. In the previous decade, there has been remarkable growth in the country’s housing sector, along with demographic changes, rise in income, increase in the number of nuclear families, and urbanisation.
The commitment to have housing for all by 2022 is the vision of the new government, and realizing this dream can be a step towards building a brighter India. Before taking any action, it is significant to re-examine the current state, recognize bottlenecks, and build an efficient execution strategy. Though the housing deficit is much wider in rural areas compared to urban areas, it requires only a small portion of total investments foresee till 2022, which can be meted out without much difficulty.
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