Housing Statistics in India

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Household: A group of persons normally living together and taking food from a

common kitchen constituted a household. It included temporary stay-aways (those


whose total period of absence from the household was expected to be less than 6
months) but exclude temporary visitors and guests (expected total period of stay
less than 6 months).
Household type: The household type, based on the means of livelihood of a
household, was decided on the basis of the sources of the household's income
during the 365 days preceding the date of survey.
Dwelling unit: It is the accommodation availed of by a household for its residential
purpose. It may be an entire structure or a part thereof or consisting of more than
one structure. In general, a dwelling unit consists of living room, kitchen, store,
bath, latrine, garage, open and closed veranda etc.
Building
Independent house
Flat
Katcha structure
Semi-pucca structure
Slums
Notified slums
Non-notified slums
Squatter settlement
Reference: NSS KI (69/1.2): Key Indicators of Drinking Water, Sanitation, Hygiene
and Housing Condition in India

Housing statistics in India


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Office of Registrar General of India (ORGI)


Census office
National Sample Survey Office.
National Buildings organisation
National Housing Bank (NHB).
Apart from these sources, Housing statistics/data is also available from HUDCO,
RBI, and other Housing Finance Institutions, Housing related research Institutions
etc.

Reference: 20th Conference of Central and State Statistical Organisations


(COCSSO) Gangtok, Sikkim 1011 January, 2013 Agenda Item4 Urban Statistics

The Ministry of Housing and Urban Poverty Alleviation is the apex authority
of Government of India at the national level to formulate policies, sponsor and
support programme, coordinate the activities of various Central Ministries, State
Governments and other nodal authorities and monitor the programmes concerning
all the issues of urban employment, poverty and housing in the country.
The Ministry was constituted on 13th May, 1952 when it was known as the
Ministry of Works, Housing & Supply. Subsequently it was renamed as Ministry
of Works & Housing when a separate Ministry of Supplies came up. The name of the
Ministry was changed to Ministry of Urban Development in September, 1985 in
recognition of the importance of urban issues. With the creation of a separate
Department of Urban Employment & Poverty Alleviation on 8th March, 1995, the
Ministry came to be known as the Ministry of Urban Affairs & Employment. The
Ministry had two Departments: Department of Urban Development & Department of
Urban Employment & Poverty Alleviation. The two Departments were again merged
on 9th April, 1999 and in consequence thereto, the name has also been restored to
"The Ministry of Urban Development". This Ministry was bifurcated into two
Ministries viz. (i) "Ministry of Urban Development" and (ii) "Ministry of Urban
Employment and Poverty Alleviation" with effect from 16.10.1999. These two
Ministries were again merged into one Ministry on 27.5.2000 and named as
"Ministry of Urban Development and Poverty Alleviation" with two Departments.
They are (i) Department of Urban Development and (ii) Department of Urban
Employment and Poverty Alleviation.
From 27-5-2004, the Ministry has again been bifurcated into two ministries viz : (i)
Ministry of Urban Development; and (ii) Ministry of Urban Employment and Poverty
Alleviation (Now Known as Ministry of Housing and Urban Poverty Alleviation ).
The Ministry of Housing and Urban Poverty Alleviation is headed by Shri
M. Venkaiah Naidu, Minister of Housing and Urban Poverty Alleviation. The
Hon'ble Minister joined on 28-05-2014.

URBAN STATISTICS
Paper by Ministry of Housing and Urban Poverty Alleviation (HUPA), NBO Urban
Statistics includes several topics - housing, demography, communication, energy,
economy, education, health, nutrition and gender, disaster, crime, migration,
income inequalities and transport. The topic for agenda paper in this analysis is
Housing and Building construction statistics in India
1.1. Housing a basic need
Housing, along with food and clothing comprise the triptych of mankinds survival.
Housing is the basic need of every individual that provides economic and social
security to individuals in the society, housing measures the economic well- being of
the individuals and his social status in the society. Housing has significant
leveraging effect for the individual as well as the entire economy. Housing and
housing related infrastructure in a country is the reflection of a nations economic
and social well-being.
1.2. Housing Engine of Economic Growth
When a massive programme of housing is launched, its multiplier effects are
impressive in the economy. Housing is regarded as an engine of economic growth
and can give a big push to the economy through its strong backward and
forward linkages with about 250 ancillary industries.
Housing
investment
has
inter-industry
linkages
and
investment
in
housing/construction sector has strong multiplier effects on generation of income
and employment in the economy. A unit increase in the final expenditure on the
construction sector would generate additional income in the economy as a whole,
which would be almost 5 times as high as the direct income generated within the
construction sector itself. Further, investment in housing has an employment
multiplier effect of almost 8.
This indicates that an additional unit of final expenditure in construction sector
induces an overall employment generation in the economy by an extent that is
eight times the direct employment generated in the construction sector itself.
For a developing economy like India, as also being the second highest populous
country, housing presumes to be the most important component of the
developmental activities. Housing plays a significant role in promoting economic
growth and improving the general level of social well-being.
1.3. Housing and urbanisation
India is witnessing increasing levels of urban population. Nearly 31
percent of the country's population lives in cities and urban areas as per
census 2011.
The level of urbanization is expected to reach 50 per cent mark in the next 2-3
decades. While cities are regarded as 'engines of growth', they continue to face
enormous challenges. Increasing urbanization has led to tremendous pressure on
land, civic infrastructure, transport, open spaces etc. However, despite significant

growth in housing stock, there is significant growth in the slum and squatter
settlements in urban India.
Within the urban population, there is a rapidly growing informal sector whose ability
is limited and gives way to mushrooming slums in the urban areas.
Adequate housing can effectively alleviate poverty by improving people's health
and making them more productive and thereby increasing their life standard. A
major policy concern for India is the widening gap between demand and supply of
housing units and inadequate housing finance solutions. This is posing a new
challenge to the Policymakers and urban planners.

Reference: REPORT OF THE TECHNICAL GROUP ON URBAN HOUSING


SHORTAGE (TG-12) (2012-17)

Causes for Inadequate Housing


The following causes of inadequate housing in the India influence the quantity,
quality and affordability of housing options available to the poor.
Social, Economic & Political Factors
1. Poverty and Economic Development: Poverty & inadequate housing work are
cyclical factors: those who lack adequate housing spend money and time on shelter
rather than on other basic needs, further entrenching them in poverty.
2. Low household income levels: In developed countries, land prices average
four times the average annual income whereas in Asia, developed land is more than
10 times the average annual income.
3. Discrimination: Women and minority groups face both implicit (higher poverty
levels) and explicit (barriers to housing based on law and customs) discrimination in
many housing markets.
4. War & Violence: War and violence creates an exodus of people who are forced
to live in temporary settlements without access to basic amenities. It also physically
destroys housing infrastructure and stalls housing production, creating further
shortages.
Housing Policy Environment
1. Decentralizing Authority: The responsibilities are often shared between
multiple agencies at multiple levels of government, with little coordination among
them thereby leading to a lack of transparency.
2. Regulatory policies: Stringent construction & urban expansion policies leading
to increased housing costs, lengthy delays in allotting permits and complex land
registration procedures are contributing to the ineffectiveness in addressing the
housing problem.
3. Forced Eviction & Relocation policies: Households from slums & illegal
settlements are forcefully evicted and are consigned to less desirable locations
which are far from places of work, education, recreation and healthcare.
Market Conditions & Housing Options

1. Land Shortages due to improper City Planning: Increasing demand for and
limited supply of urban land are leading to speculative land prices.
2. Lack of Financing: Loans require the poor to possess sufficient identification,
ownership of land and have inflexible payment schedules which do not address the
financial requirements of the poor. Microfinance loans have a very short tenure and
are mostly given out for revenue generations activities. Household Savings are nonexistent and Government interest subsidies are insufficient.
Failure of Governments
The following are some of the reasons for governmental incompetence in providing
housing for the poor
1. Standard Housing Projects: The government fails to understand the needs of
the intended beneficiaries and standard designs are not attractive.
2. Location of Housing Projects: Projects are located in the outskirts of cities,
away from places of work, education and healthcare.
3. Lack of Regulatory Mechanisms: Many MIG and HIG applicants have
benefited from the subsidized prices for housing properties meant for the EWS &
LIG sections of the population, due to lack of regulations.
4. Inefficient Land acquisition process: Acquiring land in India is a hassle & the
laws are not well defined when it comes to land acquisition and eviction. This is
leading to lengthy delays in acquiring developmental permits.
5. Increasing Land prices: The rapid increase in prices of land is leading to a
nexus between the government officials, politicians and land mafias which makes
it highly impossible and costly for the beneficiaries to get title to the land.
6.
Failure of Private Sector
The private sector has also failed to perform as per expectations in the low-cost
housing space. The following are some of the reasons for its failure:
1. Lack of Incentives: The booming urban middle class on the demand side and
increasing costs of land and construction material on the supply side have led to
housing projects being priced very high, which are now unaffordable for the poor.
2. Stringent Construction Standards: The maximum Floor Area Ratio (FAR) that
can be developed on a given piece of land is very less compared to other
developing countries. This leads to a reduction of housing units that can be built
on the same land, which in turn is leading to high prices for developed units.
3. Long recovery cycles for Financiers: The poor can spare a very little portion
of their earnings on repayment, leading to a long recovery cycle for financiers
who compensate for it by charging high interest rates.

The policies of urban development and housing in India have come a long way since
1950s. The pressure of urban population and lack of housing and basic services
were very much evident in the early 1950s. In some cities this was compounded by
migration of people from Pakistan. However, the general perception of the policy
makers was that India is pre-dominantly an agricultural and rural economy and that
there are potent dangers of over urbanisation which will lead to the drain of
resources from the countryside to feed the cities. The positive aspects of cities as
engines of economic growth in the context of national economic policies were not
much appreciated and, therefore, the problems of urban areas were treated more as
welfare problems and sectors of residual investment rather than as issues of
national economic importance.
In the First Five Year Plan (1951-56), the emphasis was given on institution
building and on construction of houses for Government employees and weaker
sections. The Ministry of Works & Housing was constituted and National
Building Organisation and Town & Country Planning Organisation were set
up. A sizeable part of the plan outlay was spent for rehabilitation of the refugees
from Pakistan and on building the new city of Chandigarh. An Industrial Housing
Scheme was also initiated. The Centre subsidised Scheme to the extent of 50%
towards the cost of land and construction.
The scope of housing programme for the poor was expanded in the Second
Plan (1956-61). The Industrial Housing Scheme was widened to cover all workers.
Three new schemes were introduced, namely, Rural Housing, Slum Clearance and
Sweepers Housing. Town & Country Planning Legislations were enacted in many
States and necessary organisations were also set up for preparation of Master Plans
for important towns.
The general directions for housing programmes in the Third Plan (1961-66) were
co-ordination of efforts of all agencies and orienting the programmes to the needs
of the Low Income Groups. A Scheme was introduced in 1959 to give loans to State
Govts. for a period of 10 years for acquisition and development of land in order to
make available building sites in sufficient numbers. Master Plans for major cities

were prepared and the State capitals of Gandhi Nagar and Bhubaneswar were
developed.
The balanced urban growth was accorded high priority in the Fourth Plan (196974). The Plan stressed the need to prevent further growth of population in large
cities and need for decongestion or dispersal of population. This was envisaged to
be achieved by creation of smaller towns and by planning the spatial location of
economic activity. Housing & Urban Development Corporation (HUDCO) was
established to fund the remunerative housing and urban development programmes,
promising a quick turnover. A Scheme for Environmental Improvement or Urban
Slums was undertaken in the Central Sector from 1972-73 with a view to provide a
minimum level of services, like, water supply, sewerage, drainage, street
pavements in 11 cities with a population of 8 lakhs and above. The scheme was
later extended to 9 more cities.
The Fifth Plan (1974-79) reiterated the policies of the preceding Plans to promote
smaller towns in new urban centres, in order to ease the increasing pressure on
urbanisation. This was to be supplemented by efforts to augment civic services in
urban areas with particular emphasis on a comprehensive and regional approach to
problems in metropolitan cities. A Task Force was set up for development of small
and medium towns. The Urban Land (Ceiling & Regulation) Act was enacted to
prevent concentration of land holding in urban areas and to make available urban
land for construction of houses for the middle and low income groups.
The thrust of the planning in the Sixth Plan (1980-85) was on integrated provision
of services along with shelter, particularly for the poor. The Integrated
Development of Small and Medium Towns (IDSMT) was launched in towns with
population below one lakh for provision of roads, pavements, minor civic works, bus
stands, markets, shopping complex etc. Positive inducements were proposed for
setting up new industries and commercial and professional establishments in small,
medium and intermediate towns.
The Seventh Plan (1985-90) stressed on the need to entrust major responsibility of
housing construction on the private sector. A three-fold role was assigned to the
public sector, namely, mobilisation for resources for housing, provision for
subsidised housing for the poor and acquisition and development of land. The
National Housing Bank was set up to expand the base of housing finance. NBO was
reconstituted and a new organisation called Building Material Technology Promotion
Council (BMTPC) was set up for promoting commercial production of innovative
building materials. A network of Building Centres was also set up during this Plan
period. The Seventh Plan explicitly recognised the problems of the urban poor and
for the first time an Urban Poverty Alleviation Scheme known as Urban Basic
Services for the Poor (UBSP) was launched.
As a follow-up of the Global Shelter Strategy (GSS), National Housing Policy
(NHP) was announced in 1988. The long term goal of the NHP was to eradicate
houselessness, improve the housing conditions of the inadequately housed and
provide a minimum level of basic services and amenities to all. The role of
Government was conceived, as a provider for the poorest and vulnerable sections
and as a facilitator for other income groups and private sector by the removal of
constraints and the increased supply of land and services.

The National Commission of Urbanisation submitted its report. The Report


eloquently pointed out the reality of continuing and rapid growth of the urban
population as well as the scale and intensity of urbanisation, the critical deficiencies
in the various items of infrastructure, the concentration of vast number of poor and
deprived people, the acute disparities in the access of shelter and basic services,
deteriorating environmental quality and the impact of poor governance on the
income and the productivity of enterprises.
In the backdrop of this report the Eighth Plan (1992-97) for the first time explicitly
recognised the role and importance of urban sector for the national economy. While
growth rate of employment in the urban areas averaged around 3.8% per annum, it
dropped to about 1.6% in the rural areas. Therefore, the urban areas have to be
enabled to absorb larger increments to the labour force. The Plan identified the key
issues in the emerging urban scenario:
the widening gap between demand and supply of infrastructural services badly
hitting the poor, whose access to the basic services like drinking water, sanitation,
education and basic health services is shrinking unabated growth of urban
population aggravating the accumulated backlog of housing shortages, resulting in
proliferation of slums and squatter settlement and decay of city environment high
incidence of marginal employment and urban poverty as reflected in NSS 43 rd round
that 41.8 million urban people lived below the poverty line.
The response of the Plan to this scenario was the launching of Urban Poverty and
Alleviation Programme of Nehru Rojgar Yojana (NRY)
Reference: http://mhupa.gov.in/policies/index2.htm

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