Industry Expects Stimulation on PMAY Extension

The Centre’s decision to give financial assistance for the construction of 30 million additional housing units under Pradhan Mantri Awas Yojana (PMAY) is expected to augment supply of much-needed affordable housing and move closer the government’s vision of providing housing to all.

The decision by the Modi government in its third term is expected to have a significant multiplier effect on the economy given the realty sector’s linkages with over 250 ancillary industries. The government had launched the PMAY mission in June 2015.

Real estate, being the second largest employer in the country, stands to benefit significantly from the extension of the PMAY scheme, which will stimulate job creation and boost economic growth.

By addressing fundamental housing needs, PMAY contributes to broader goals of social equity and sustainable development, ensuring a better quality of life for all.

Building new house in urban and rural areas, and enhancing last-mile connectivity through infra projects, is expected to open numerous untapped markets, driving further development and investment opportunities. In the interim budget in February, finance minister Nirmala Sitaraman had announced support for building an extra 20 million homes in 5 years under PMAY-Graming (PMAY Rural), Budgetary allocation for PMAY was also increased to `80,671 crore for FY2025 from `79,590 crore last fiscal.

Under PMAY scheme, the Centre gives financial support to implementing agencies in states and union territories well as well as central nodal agencies (CNAs) for providing houses to all eligible families and beneficiaries. According to the government, over 42.1 million homes have been built under this scheme over the last decade.