Budget Snapshots | Allocations for affordable housing will determine if action matches intent

In 2015, Prime Minister Narendra Modi launched the Pradhan Mantri Awas Yojana (PMAY) initiative, to provide affordable housing to eligible Indian citizens. The success of the scheme depends on the total amount disbursed by the Government over the life of the scheme. The PMAY allocation will again be a key monitorable in the upcoming budget as the scheme has received an allocation in excess of Rs 25,000 crore in the previous two budgets.

India’s real estate sector has embraced this scheme whole-heartedly at a time when demand for houses is crawling. It also has linkages to other sectors of the economy, such as housing finance, employment in the real estate sector and demand for allied construction material sectors. A robust allocation in the Budget will be a signal that the government’s support will continue to create demand.