As the interim budget is round the corner, India is planning to announce an extension to Prime Minister Narendra Modis flagship housing scheme and an increase in available subsidies for low-cost housing loans, according to the sources.According to the information, Finance Minister Nirmala Sitharaman, who will present an interim budget on February 1, is likely to raise allocations for low-cost housing by more than 15% to $12 billion for 2024-25 from 790 billion rupees in the 2023-24 budget. It is anticipated that this boost will have a significant impact on several people. $29 billion has been spent on housing over the past five yearsThe government reported to parliament last month that the Center and the states have spent $29 billion over the last five years under the project to encourage affordable housing in both rural and urban areas.It was supposed to expire in December 2024, but since it hasnt yet met its goal, the government may decide to prolong it for an additional three to five years, according to the people who are aware of the matter. The finance ministry has refrained from commenting on this, though.Here are some of the potentials of this:Increased availability of affordable housing: A major injection of funds could lead to the construction of more affordable housing units, potentially easing the housing shortage for low- and middle-income families.Reduced housing costs: Increased supply could put downward pressure on rents and property prices, making housing more accessible for those struggling to afford it.Economic growth: The construction and development of new housing projects could create jobs and stimulate economic activity in related sectors.Improved quality of life: Access to safe and affordable housing is essential for overall well-being, and this initiative could potentially lead to better living conditions for many people.Effective implementation of funds will ensure that the funds are utilized efficiently and reach the intended beneficiaries. However, hurdles at bureaucratic levels can be significant challenge. Apart from this, Identifying and acquiring land for affordable housing projects can be difficult and time-consuming, potentially delaying the pace of development.
