To provide Housing for all by 2022 in India, the government of India needs to develop the housing finance sector, Housing and Housing finance go hand in hand. In this section, we study the growth of housing finance sector in India since independence.

1. Growth of Housing Finance in India
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Growth of Housing Finance in India
Five Year Plan Key Housing Highlights Key Housing Finance Highlights
1st Five-Year Plan (1951-56)
Introduction of Housing in the national policy framework, and affordability emphasized as the key issue
Government support through subsidies and loans was deemed necessary.
2nd Five-Year Plan (1956-61)
Setting up of State Housing Boards
Government provided assistance to State Governments to develop low-income housing, instead of directly providing loans to low-income group
3rd Five-Year Plan (1961-66) (followed by a triennial plan (1966- 69)
Emphasis on planned development and land acquisition, particularly for urban areas
Government assistance to State Governments continued to support low-income housing
4th Five-Year Plan (1969-74)
Private and co-operative housing schemes introduced with funding from Government
The Housing and Urban Development Corporation (HUDCO) was set up in 1970 to provide housing finance to low-income groups and to finance urban development activities to help decongest cities.
5th Five-Year Plan (1974-79)
Urban Land (Ceiling and Regulation) Act (ULCRA) was adopted for equitable distribution of land
India’s first retail housing finance company, Housing Development Finance Corporation (HDFC) was set up in 1977. HDFC sought to provide financial assistance to individuals, groups and cooperative societies, as well as to companies for staff housing.
6th Five-Year Plan (1980-85)
More emphasis on Housing in small and medium-size towns, Slum Improvement.
Other housing finance companies entered the market.
7th Five-Year Plan (1985-90)
Radical reorientation of housing policies.
National Housing Bank founded in 1988 to promote and regulate housing finance companies and to mobilize additional resources for housing.
Major responsibility of house construction left to the private sector, and Government’s role in promotion of housing sector emphasized
National Housing Policy was formulated in 1988
During this period, several housing finance companies were promoted , with participation from banks/insurance corporations.
Indira Awas Yojana introduced for rural poor (Visit Ministry of Rural Housing for details)
8th Five-Year Plan (1992-97)
Encouragement of Private Sector for housing-related activities
Financial and legal reforms recommended for development of the mortgage market
Government incentives emphasized to enhance the credit flow to the housing sector through housing finance institutions.

2. Growth of Housing Finance in India
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Five Year Plan Key Housing Highlights Key Housing Finance Highlights
9th (1997-2002) Five-Year Plan
Development of urban areas as economically efficient, socially equitable and environmentally sustainable entities.
Market-friendly reforms In both taxation and infrastructure to increase capital spending in housing.
Promoting accessibility and affordability of the poor to housing and improvement of urban environment
Fiscal concessions coupled with legislative measures were initiated to encourage increased investment in housing by individuals and corporate
Private sector and NGO participation increased
Democratic decentralization and strengthening of municipal governance
Development of housing in low income groups.
Adoption of the National Housing and Habitat Policy in 1998
10th
Provision of free housing only to the landless SC/ST families
Credit cum subsidy scheme for Below Poverty Line
(2003-2007) Five-Year Plan
Adoption of a revised National Urban Housing and Habitat Policy in 2007
Repeal of ULCRA — a reform in the urban land market
Launch of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) by the Central Government to fund cities for developing urban infrastructure and services.

3. Growth of Housing Finance in India
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Five Year Plan Key Housing Highlights Key Housing Finance Highlights
11th
Stressed the need for improved housing stock through urban renewal
Application of low cost technologies
(2007-2012) Five-Year Plan
Affordable Housing Concept has extended into Real Sector market
Bharat Nirman program recognized and accorded due priority to end the shelter less
Interest Subsidy scheme introduced for urban poor
Focus is on targeting the poorest of the poor while targeting the remaining housing shortage with other interventions
Rajiv Awas Yojana launched for urban poor (Visit Ministry of Housing and Urban Poverty Alleviation for details)
Source: National Housing Bank
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