Declining government support but increasing private investments

[Jonaclamso]

While commendable strides have been made in achieving self-sufficiency in food and clothing, housing has not been accorded its due priority in the Five Year Plans of the country. Even though the total quantum of investment in housing has increased over the years, as a proportion of the total investment in the economy, it has progressively declined from 34 percent in the first plan to 7.5 percent in the sixth plan and nine percent in the seventh plan as can be seen from the table below which gives the details of the investments in housing during the five year plan period:

Plan period Investment in housing) Investment in the economy
(Rs in crore (Rs in crore)

First 1,150 3,360
Second 1,150 6,760
Third 1,550 10,450
Fourth 2,800 22,635
Fifth 4,680 47,561
Sixth 12,991 1,72,201
Seventh 31,468 3,49,148

Investment in housing has also not kept pace with increase in National income. At constant prices, the share of gross fixed capital formation in housing declined from 3.2 percent of gross domestic product in 1980-81 to 2.7 percent in 1987-88. When considering the developments in state has achieved much not due to the support of the government but due to the bold attempt of the private builders and realtors to effect a change in the housing situation. With each passing year the investments from the private limited builders is actually increasing.