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Massive Urban Renewal underway for Poor in India

"In an effort to deal with rising urbanization and urban poverty within the country, the Indian government has recently bolstered efforts to provide low-cost urban housing."

"At present, there are over 80 million urban poor in the country. India needs to add about 40 million low-cost houses. Around 45% of urban poor in India live in slums or in squatter settlements. The rest live in makeshift locations such as pavements, under bridges and under flyovers. Even if the present urban poverty rate of over 25% declines at the rate of 5% per decade, then, in 2020, there will be 94 million poor persons in urban areas, and 91.5 million in 2030...."

Implications:

"For per unit price of USD 3300, excluding land costs, the government will have to make an investment of around USD 15.5 billion, or just over 1% of the GDP to achieve the required new housing at present. If spread over a period of approximately 10 years, this number is affordable. Furthermore, this push comes at a time when the highest level of the government has shown a firm commitment to the project. This time, the efforts are being made country-wide by the central government, instead of disjointed efforts by states at different times.

"India’s Ministry of Housing and Urban Poverty Alleviation (MHUPA) came out with its National Urban Housing and Habitat Policy in 2007, and the Jawaharlal Nehru National Urban Renewal Mission was launched in 2006, both of which are primarily aimed at providing highly subsidized or free housing to urban poor, along with other allied services, such as sanitation, free healthcare, clean water, electricity and education."

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Sources:

Strategic Foresight Group, Asian Horizons, Issue No: 6, August 2010. Page 4.

http://newsletters.clearsignals.org/SFG_Aug2010.pdf#page=4

• ‘World Urbanization Prospects: The 2007 Revision Population Database’.
<http://esa.un.org/unup/>

• ‘National Urban Housing and Habitat Policy 2007’. Ministry of Housing and Urban Poverty
Alleviation, Government of India. < http://mhupa.gov.in/policies/duepa/HousingPolicy2007.pdf> • ‘India: Promoting Inclusive Urban Development in Indian Cities’. Asian Development Bank.
October 2008. <http://www.adb.org/Documents/TARs/IND/41609-IND-TAR.pdf>

• ‘Housing and Urban Poverty Alleviation: New Initiatives’. India Current Affairs. 31 December
2009. <http://indiacurrentaffairs.org/housing-and-urban-poverty-alleviation-new-initiatives/>

• ‘India's urban poor need 40 mn houses, 500 health centres: ASSOCHAM report’. InfoChange India. 3 January 2008. <http://infochangeindia.org/200801236839/Urban-India/News/India-s-
urban-poor-need-40-mn-houses-500-health-centres-ASSOCHAM-report.html>