Pradhan Mantri Awas Yojana (PMAY): Government of India’s Approach to Affordable Housing for the Urban Poor

Abstract

Affordable housing is primarily a market-based notion that emphasises the significance of one's ability to pay for housing. The main issue with India's urban poor is that some households can never, ever, ever afford suitable accommodation. Affordable home in India is a distant goal due to the interaction between their poverty and the country's housing market. The article tests Engel's law to ascertain the disposable income of the poor for housing using data from the National Sample Survey Office's 68th Round Consumer Expenditure Survey and India's Consumer Economy (ICE 360) Survey. The poor have less spare income and spend a larger percentage of their income on essentials, making it difficult for them to buy a home. The Pradhan Mantri Awas Yojana (PMAY), the government's lauded flagship initiative, is distant from the market reality, according to data compiled from a private property website for 22 cities.