India’s Narendra Modi-led central government launched the ambitious “Housing for All by 2022” scheme in June 2015. Targeted at the country’s urban areas, the scheme will cover over 300 cities and will aim to build about 2 crore houses by the end of 2022 – when India completes 75 years of Independence.
The central government will provide subsidies for the construction of these houses, making ‘affordable housing’ a business friendly proposition. This is expected to result in the participation of private sector builders and developers, and consequently prove to be an additional business opportunity for all building material companies.
However, will the Modi-led government achieve this mammoth target? Most likely not, and here’s why
Construction of two crore houses in six years translates to a little over 9,100 houses each day or about 380 houses each hour.
Let’s be realistic, given the poor track record of government project implementation, this target is logically impossible to achieve.
To be more realistic, ValueNotes has estimated that about 30% of the target (which is also a huge target) could be achieved by 2022. So, what will be the resulting business opportunity for building material companies? To find out, view our infographic below –