Contribution of housing to the Indian economy

Housing is an important aspect of living of human beings. In general, it is referred to as a composite of land (or, floor space) and built structure. This standard definition assumes the use of appropriate materials, technology, and well developed land with clear titles. However, this standard definition applies well to housing in developed world, whereas in the developing countries like India it is often referred to what is known as ‘formal’ housing, the contribution of which is somewhat low. As a corollary, most of the housing in developing countries is characterized by ‘informal’ nature of housing. Both these sectors of housing, however, are characterized by great contrast not only in terms of what constitutes housing, but also in terms of the production process, financing and tenancy (Nallathiga 1999). These characteristics render complexity to the understanding of housing. Moreover, most of the formal sector housing is adherent to local planning and building regulations, whereas, informal sector housing is largely present on public land, often illegally squatted and present in dangerous conditions.