Union Finance Minister Nirmala Sitharaman has unveiled the 2024-25 budget, placing significant emphasis on housing and urban development. The budget allocates INR 82,576.57 crore to the Ministry of Housing and Urban Affairs (MoHUA), reflecting a 19.2% increase from the previous year’s revised estimates. This funding underscores the government’s ambition to transform India’s urban landscape into thriving growth hubs.
A major highlight is the ambitious INR 10 lakh crore investment directed towards the Pradhan Mantri Awas Yojana (PMAY) 2.0, aimed at constructing 10 million new urban housing units. Sitharaman indicated that this initiative would be bolstered by INR 2.2 lakh crore in central funding over the next five years, demonstrating the government’s commitment to addressing the pressing housing needs of the urban poor. The budget also introduced a transit-oriented development (TOD) framework, targeting 14 major Indian cities. This framework seeks to harmonise land-use plans with transportation infrastructure, aiming to reduce commuting distances and foster the creation of mixed-use neighbourhoods near transit hubs. This initiative aligns with the ongoing expansion of metro networks in various urban areas.
In a move to invigorate the housing market, Sitharaman encouraged states to consider moderating steep stamp duties, proposing additional reductions for properties purchased by women. Furthermore, the budget aims to establish transparent rental housing markets through public-private partnerships (PPP), alongside the construction of affordable housing facilities for working women within industrial parks. Digital transformation in urban governance was another focal point, with an announcement for the digitisation of land records in urban areas using Geographic Information System (GIS) mapping. This initiative is designed to streamline property record administration, update processes, and enhance tax administration, thus boosting transparency and efficiency in urban local bodies.
The budget has also allocated INR 1,150.02 crore towards the National Urban Digital Mission, reinforcing the government’s commitment to leveraging technology for effective urban management and infrastructure development. Significant funds have been earmarked for water supply, sanitation infrastructure, and metro rail projects across the nation, which are crucial for bolstering urban infrastructure. While the budget addressed the interest subvention scheme for urban housing, specifics regarding its implementation remain undisclosed, leaving stakeholders eager for further clarity. Sitharaman also noted enhanced funding for initiatives like PM Svanidhi and DAY-NULM, which support street vendors and promote urban livelihoods, despite a reduction in their allocated budgets compared to the previous year. As India strides towards an ambitious urban future, the budget reflects a commitment to not only enhance housing availability but also to create integrated, sustainable urban environments that foster economic growth and improve the quality of life for citizens.
