In 2015, the Indian government introduced the Pradhan Mantri Awas Yojana (PMAY) to provide affordable housing to all citizens by 2022. Through this credit-linked subsidy scheme (CLSS), the government aimed to provide beneficiaries with an interest subsidy to avail loans to purchase or build a house. The scheme was launched to aid the middle-income community (MIG), economically weaker sections (EWS), and low-income groups (LIG). Depending on the areas it serves, the scheme is divided into two sections: Pradhan Mantri Awas Yojana-Urban (PMAY-U) and Pradhan Mantri Awas Yojana Gramin (PMAY-G).
Introduced in 2016, PMAY-U aimed to provide Housing for All by 2022 by establishing 1.12 crore houses for urban poor across the country over the next seven years (between 2015 and 2022). Launched in November 2016, PMAY-G was designed to support Housing for All by 2022 by building 2.95 crore houses for rural poor across the country by 2022.
Need for Pradhan Mantri Awas Yojana (PMAY)
Over the past few decades, the significant rise in the Indian population and income has resulted in higher housing demands. Despite the government’s efforts to meet the rising demand by introducing numerous public housing programmes (e.g., Jawaharlal Nehru National Urban Renewal Mission, 2005), there has been a housing shortage. As per the Socio Economic and Caste Census (SECC), 2011, approximately 40 million Indian households were estimated to be homeless or living in inadequate or congested housing without basic facilities.
Further, between 2012 and 2019, the average real housing prices increased faster than GDP per capita, hampering housing affordability, especially for low-income households. To ensure affordable housing is available to all, in 2015, the government set a target to build affordable houses under the Pradhan Mantri Awas Yojana (PMAY) and achieve ‘housing for all’ by 2022.
The government also integrated other central and state/UT schemes for the overall welfare of households by providing LPG connections under the Pradhan Mantri Ujjwala Scheme, electricity connections, and safe drinking water access under the Jal Jeevan Mission; support for unskilled labour wages under Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), etc.
Key Beneficiaries and Initiatives
I. Key Beneficiaries
| Categories | Description |
| Economically Weaker Sections (EWS) | Includes people with annual household income under Rs. 3 lakh (US$ 3,990) |
| Low-Income Groups (LIG) | Comprises people with annual household income between Rs. 3 lakh (US$ 3,990) and Rs. 6 lakh (US$ 7,990) |
| Middle-Income Groups (MIG) | MIG I: People with annual household income under Rs. 12 lakh (US$ 15,980) MIG II: People with annual household between Rs. 12 lakh (US$ 15,980) and Rs. 18 lakh (US$ 23,970) |
| Minorities | Includes candidates who qualify for this scheme as per the criteria required by the SECC. For example, scheduled castes (SC), scheduled tribes (ST), minorities, and non-SC/ST people living below the poverty line. |
II. Key Initiatives
| Key Schemes | Description |
| In-situ Slum Redevelopment (ISSR) | Slum Redevelopment using land as a resource with private participation. |
| Credit Linked Subsidy Scheme (CLSS) | Create affordable housing for EWS and LIG. |
| Affordable Housing Projects (AHP/PDD) | Collaborate with a private or public developer to develop affordable housing systems. |
| Beneficiary-Led Construction (BLC) | Grant loans to individuals under EWS to build a house. |
In May 2020, the government extended CLSS for MIG under PMAY-U, leading to an investment of more than Rs. 70,000 crore (US$ 9.32 billion) in the housing sector.
Progress of Pradhan Mantri Awas Yojana (PMAY)
III. Pradhan Mantri Awas Yojana-Urban (PMAY-U)
| Construction of Houses | As of April 2024 |
| Demand | 112.24 lakh |
| Sanctioned | 118.64 lakh |
| Grounded | 115.23 lakh |
| Completed | 86.77 lakh |
| Investment Approved | US$ 96.83 billion |
IV. Pradhan Mantri Awas Yojana-Urban (PMAY-G)
| Construction of Houses | As of April 2024 |
| MoRD Target | 3,30,19,624 |
| Registered | 3,46,68,231 |
| Sanctioned | 3,15,91,488 |
| Completed | 2,65,98,449 |
| Fund transferred | US$ 39.14 billion |
Budget Allocation & Highlights
In the Interim Budget for 2024-2025, the allocation for PMAY Rural stands at US$ 6.54 billion, a substantial increase from US$ 3.84 billion allocated in the previous fiscal year. For PMAY Urban, the allocation for 2024-2025 is US$ 3.14 billion, up from US$ 2.65 billion.
Conclusion
The Pradhan Mantri Awas Yojana (PMAY) has made significant strides in addressing the housing shortage in India, particularly for economically weaker sections and low-income groups. The financial support, integration with welfare schemes, and focus on sustainability have contributed to achieving the goal of ‘Housing for All’.
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