Housing Policy in India: Challenges and Reform

Abstract

Housing is an important sector of the economy and the provision of it is largely determined by state policy and interventions. The economic importance of housing calls for cautious policy framework, so that it does not hamper the growth. After continuing with a housing policy dominated by the State’s housing provision through various policies and programmes, it moved towards enabling the provision of housing with the advent of new economic policy un veiled in the early Nineties. Although, private sector has a larger role to play, the State has to play the role of provider of social housing for the poor and ensure that the regulatory environment enables and ensures the appropriate levels of housing. In this context, the current paper analyses the changes in the housing policy in India in the light of its changing economic, institutional and regulatory environment. It argues that while continuing with the reforms already laid down on demand side, it is necessary to focus on supply side reforms, particularly in land and housing regulations at local level. Moreover, housing the poor needs to be addressed through well-targeted and subsidized programmes, in partnership with other stakeholders. The paper discusses the experience of housing policy and programmes and then identifies the reform agenda that surrounds the outdated legislations, incompatible planning standards and regulatory policies contributing to the exacerbation of the housing problems in cities. It notes, however, that the recent initiatives do spell out such intent and particularly with the programmes of overall renewal of cities.