Modi's affordable housing push to garner $1.3 trn funds

Mumbai: Prime Minister Narendra Modi's dream of 'Housing for All' will bring $1.3 trillion worth of investments to country, according to a report in Bloomberg. Modi has envisioned affordable housing for country's poor, a majority of whom is homeless and spends days and nights on pavements.

The report cites CLSA India Pvt finding that claims "the best affordability in two decades will unleash a $1.3 trillion wave of investment in housing over the next seven years."

The firm expects 60 million new homes will be built during 2018 and 2024 that will require huge construction activity which in turn will generate about 2 million jobs annually, the report said.

The substantial increase in construction activity and resultant rise in employments will enhance country's overall gross domestic product or GDP that will see a jump of about 75 basis points.

"The volume of social and affordable housing will rise almost 70 percent to 10.5 million annually by 2024, exceeding the 33 percent increase in the premium market," the report said.

For making its dream of 'Housing for All' come true, the Narendra Modi government early this year extended 'infrastructure status' to builders who undertake affordable housing projects.

Under the 'infrastructure status', a builder is eligible to get state incentives, subsidies, tax benefits and institutional funding for completing their projects.  One year after assuming office in 2014, the Modi government declared 'Housing for All' scheme which aims to construct 20 million homes.