What TV doesn't, print can't; we deliver.
What TV doesn't, print can't; we deliver.
The recent call by NITI Aayog for policy changes to house workers near their workplaces is a significant move towards addressing one of the critical challenges hindering India’s industrial growth. The proposal to classify factory worker housing as a distinct category aims to streamline taxes, boost manufacturing, and attract investment. This initiative is crucial for achieving India’s ambitious economic goals and supporting the projected influx of manufacturing jobs.
The lack of adequate housing near industrial hubs has been a major bottleneck for the manufacturing sector. Poor housing conditions lead to high attrition rates, reduced productivity, and workforce instability. Moreover, the absence of suitable accommodations restricts the migration of workers, particularly women, thereby limiting the sector’s growth potential. By designating factory worker housing as a separate category, the government can ensure that residential property tax, electricity, and water tariffs apply, and GST exemptions are provided for eligible units.
India’s ambition to become a $10 trillion economy by 2035 relies heavily on the growth of its manufacturing sector, which is set to be a major contributor to GDP. With nearly 60 million workers employed in the manufacturing sector, effective solutions for worker accommodation are essential. The ability to address the accommodation needs of workers effectively will play a significant role in enhancing productivity, improving global competitiveness, and attracting investments.
The report by NITI Aayog on secure, affordable, flexible, and efficient (SAFE) accommodations for industrial workers highlights several key recommendations. These include streamlining environmental clearances, promoting gender-inclusive policies, and implementing flexible zoning laws. The report also backs amendments to zoning regulations to allow mixed-use developments near industrial hubs, facilitating worker housing close to workplaces.
In the Budget 2024-25, the Finance Minister emphasized the importance of rental housing with dormitory-style accommodations for industrial workers. The report highlights challenges in scaling up workers’ accommodation, including restrictive zoning laws, conservative building bylaws, high operating costs, and financial viability. Government estimates show that India needs to generate 7.9 million jobs annually until 2030 to sustain its economic growth trajectory. A significant portion of these jobs will come from the manufacturing sector, which large-scale mega factories increasingly characterize.
