Study on employment generation under Pradhan Mantri Awas Yojana–Urban, and its Impact

To address the problem of housing shortage in urban India, the government approved a massive national housing scheme “Pradhan Mantri Awas Yojana-Urban” (PMAY-U) in June 2015. The scheme aims to construct about one crore affordable houses in the urban areas with a slogan ‘Housing for All by 2022’.

This study attempts to understand the impact of the PMAY(U) scheme on the overall employment generation (both through direct and indirect channels). The study uses Detailed Project Reports for hills and plains as well as the Analysis of Rates, 2018 to estimate the direct employment generation and Input-Output Analysis for an indirect employment estimate. The overall employment generation is estimated considering the number of houses grounded (both completed as well as under construction) in all four verticals of the scheme.

The analysis based on secondary data reveals that the PMAY(U) programme has made a significant impact on employment generation in the economy with important implications for household welfare and overall economic growth of the country.