Housing for all

JEEVANT RAMPAL (Faculty, IIM Ahmedabad) EDUARDO FABRES (Research Assistant, IIM Ahmedabad)

Housing is a fundamental challenge for rural India. A large proportion of rural households reside in kutcha structures made of mud, bamboo, or other non-durable materials. This makes these households vulnerable to harsh weather conditions. The Indian government has been working to address this issue through the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G), a mammoth social welfare program focused on providing “Housing for All.” The scheme aims to provide ?nancial and construction assistance to build pucca houses -- which are durable, weather-resistant, and equipped with essential amenities -- to all houseless households and to the rural households that live in kutcha and dilapidated houses. The progress of PMAY-G has been commendable: 2.67 crore houses have been constructed as of October 2024 according to the Ministry of Rural Development (MRD). Will there truly be housing for all? How effectively does the PMAY-G tackle the challenges of rural housing?

PMAY-G has utilized technology to improve the quality of construction and oversight in disbursal of benefits. In improving the quality of construction, a key component of the PMAY-G is the Rural Mason Training (RMT) Program, which, with the support of the National Skill Development Corporation, has trained 2.81 lakh masons to ensure better construction quality while developing and harnessing local expertise. While improving quality, this local-expertise method has helped increase the pace of new initiatives under PMAY-G, with the new housing initiatives crossing 40 lakhs in 2021-22, and crossing 50 lakhs in 2022-23 breaking all previous records.

Recent research shows that the PMAY-G has signi?cantly improved bene?ciaries’ lives across multiple dimensions by enhancing housing conditions, infrastructure access, and overall well-being. Signi?cant improvements have been noted in social status, self-esteem, and a sense of belonging; the last probably contributing to a reduction in distress migration. A key focus of the PMAY-G has been on the provision of affordable homes for marginalized groups, prioritizing transparency, female co- ownership and, thereby the empowerment of these sections of the population. Evidence also highlights a signi?cant employment impact (via MGNREGS), with the program generating approximately 314 person-days of work per house since 2016, including 81 skilled, 71 semi-skilled, and 164 unskilled person-days.

The Rural Mason Training program has also been of high quality with some certi?ed masons securing opportunities to work abroad in the construction sector. The focus on quality is also shown by the fact that disaster-resilient designs are supported by initiatives like the Pahal Compendium, which provides diverse house design typologies with disaster resilient features based on local conditions and locally available materials. The Pahal Compendium is supported by an App which provides recommended ideal 3D house design.

The use of technology has contributed to the success of PMAY-G in improving bene?ciary lives through two key channels: improved oversight and greater program integration. Program integration ensures bene?ciaries access a wide range of essential services by aligning PMAY-G with other government initiatives on the construction of toilets (SBM), LPG connection (PMUY), provision of piped drinking water (Jal Jeevan Mission), electricity connections (Saubhagya), clean energy solutions, and other vital amenities, improving the overall quality of life for bene?ciaries. As such, the focus of PMAY-G towards improving citizens’ lives rather than simply racking up housing numbers is a welcome policy feature.

Improved oversight has also played a crucial role in maintaining transparency and fairness. Beneficiaries are targeted from the SECC (Socio Economic and Caste Census) 2011 and Awaas+2018 lists, following the housing deprivation criteria, verified through Gram Sabhas and appellate process. Furthermore, the Awaas+ List is updated using surveys conducted through a Mobile App “Awaas+2024,” which also provides the option of self-survey by households. Recently, facial recognition systems have been incorporated to achieve further improvements in oversight.

The scale of the PMAY-G dwarves other similar housing policies across the developing world. PMAY-G has an ambitious goal of supporting the construction of an additional 2 crore houses by 2029. For context, Brazil’s “My House, My Life” program has delivered or contracted only about 60 lakh housing units as of 2021 (Government of Brazil), and South Africa’s Reconstruction and Development Programme built only about 11 lakh homes for low-income families from 1994 to 2001 (Tom Lodge, 2003). PMAY-G’s scale and scope places it among the most impactful housing initiatives globally.

While existing research shows that the PMAY-G has been an overall success, this research also highlights certain areas of improvement for the future. First, to ensure the program reaches those who need it the most, access to information about eligibility criteria can be enhanced. This would help bridge gaps in awareness and ensure broader participation. Second, to improve the quality of the policy, it is essential to improve the channels for bene?ciary feedback, addressing possible blind spots in the policymakers’ perspectives. Finally, the distribution of housing initiatives across the States has substantial variation: some States have achieved or exceeded their targets while others have not even begun. The PMAY-G has shown promise in ensuring not just housing but also a range of additional bene?ts for bene?ciaries, signi?cantly improving their quality of life. Broad political consensus for implementing the PMAY-G across States can ensure a more balanced and effective allocation of resources across India to indeed achieve housing for all.

( A PIB feature)