Government Role in Building Bharat, Strengthening India’s Real Estate Ecosystem Through Policy and Partnerships
Why in News?
India’s real estate sector is on a transformative journey, expected to reach $1 trillion by 2030 and contribute 13% to India’s GDP by 2025. In a recent op-ed, Girish Kousgi, MD & CEO of PNB Housing Finance, emphasized the need for strong government policies, digital enablement, and public-private partnerships to sustain this growth. This sector is critical to the vision of Viksit Bharat by 2047. 
Introduction
India’s economy has shown stability amidst global disruptions, with growth largely driven by domestic consumption—particularly in infrastructure and real estate. There is a major shift in India’s population from rural to urban areas, increasing demand for affordable housing in cities and towns. The government and private stakeholders are now focusing on policy reforms, financial accessibility, and housing for all.
Key Highlights and Institutional Concerns
1. Housing Demand and Demographic Shift
The housing shortage in India is mostly in the low-income and economically weaker sections, which account for 95% of the housing deficit. Affordable housing demand is driven by urban migration, rising aspirations, and access to finance. Households earning under ₹9 lakh often lack access to formal financing channels.
2. Government Reforms Supporting Real Estate
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RERA (2016): Ensures transparency, fixed project timelines, and trust in developers.
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Union Budget Reforms: Reduced income tax for homebuyers has improved affordability.
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PMAY (Urban): Extended to December 2024, the scheme subsidizes loans for urban poor and middle-class families.
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Affordable Housing Fund & CLSS: Financial support for lower and middle-income buyers.
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Rental Housing Models & Fractional Ownership: Innovative ideas to utilize vacant properties and encourage co-investment.
3. Financial Enablement for Growth
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Revised rules allow homes to be taxed only once as self-occupied properties.
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Home loans with stable interest rates help borrowers retain properties longer.
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Lower GST slabs for residential properties to reduce overall housing costs.
4. Private Sector and NRI Role
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NRIs are increasingly investing in Indian real estate.
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Favourable changes in FEMA (Foreign Exchange Management Act) and digital property management tools are helping the sector globalize.
5. Towards Viksit Bharat 2047
With strong policies, access to finance, and digital innovation, India’s real estate can become a key driver for a developed India (Viksit Bharat) by 2047.
Conclusion
The synergy between government policies, demographic changes, and enhanced financial access is reshaping India’s real estate landscape. With the housing sector at a crossroads, embracing scalability, technology, and public-private partnerships will ensure inclusive growth and urban development. This real estate transformation is a vital pillar of India’s vision of Viksit Bharat 2047.
Q&A Section
Q1. What is the expected size of India’s real estate sector by 2030?
A1. It is expected to reach $1 trillion, contributing 13% to India’s GDP by 2025.
Q2. What major policy has improved transparency in real estate?
A2. The Real Estate (Regulation and Development) Act, 2016 (RERA) has ensured transparency, timely delivery, and better governance.
Q3. How is the government supporting affordable housing?
A3. Through schemes like PMAY-U, tax reductions, rationalized GST slabs, and funding for low-cost housing projects.
Q4. What role do NRIs play in the real estate sector?
A4. NRIs are investing more in Indian properties due to policy support and relaxed rules under FEMA.
Q5. What are the future goals for real estate under Viksit Bharat 2047?
A5. The sector aims to support inclusive urban growth, promote sustainable housing, and become a key economic driver for a developed India.
