BAKU, Azerbaijan, May 21. India is actively implementing one of the largest social housing construction programs globally, a massive undertaking that has already yielded tens of millions of homes for its population, Sanjay Shukla, Managing Director of the National Housing Bank of India, said, Trend reports.
He made the remark during a session titled "A New Deal for Housing Finance" held within the framework of the 13th session of the World Urban Forum (WUF13) in Baku.
According to him, India, ranking as one of the largest nations globally in terms of both geographic territory and population metrics—manages these large-scale housing pipelines by carefully factoring in extensive regional diversity.
He noted that under the flagship state-backed program, Pradhan Mantri Awas Yojana (PMAY), a staggering 29.5 million homes underwent construction between 2014 and 2019. Building upon this momentum, the upcoming five-year cycle targets the construction of approximately 30 million additional housing units. Within this newly allocated volume, 20 million homes are earmarked specifically for urban populations, while 10 million units will deploy across rural districts.
Shukla reported that the program strategically leverages a capital reallocation mechanism embedded within the broader banking sector, utilizing mandatory priority sector lending requirements. According to the managing director, unused lending quotas from commercial banks undergo direct diversion into the affordable housing sector at a highly subsidized rate of approximately 4%. He emphasized that this financial model has successfully multiplied the volume of available affordable financing, providing robust support to primary mortgage and credit institutions.
"India currently hosts approximately 94 housing finance companies operating directly within the residential lending market, specifically targeting low-income urban populations. Remarkably, the delinquency rate for these mortgage loans remains strictly below 1%. The broader Indian housing finance matrix seamlessly integrates direct state subsidies, commercial bank lending pools, and flexible co-participation models linking public authorities and citizens across various land allocation and construction schemes," Shukla stated.
This highly integrated, multifaceted structural model provides the necessary fiscal foundation to successfully scale and sustain such immense housing infrastructure programs over long-term timelines, the banking chief concluded.
Today marks the fifth day of WUF13 in Baku.
The first day included a ministerial meeting dedicated to the New Urban Agenda, a ministerial roundtable, assemblies for women and civil society, business sessions, and discussions on urban prosperity. An official ceremony marking the raising of the UN and Azerbaijani flags also took place.
The second day stood out for the inaugural Leaders' Summit, featuring high-level discussions on the global housing crisis, urbanization policy, and urban resilience. Concurrently, the opening of the Mexico City pavilion took place, serving as a significant platform for expanding cooperation with the Latin American region and preparing for WUF14.
The third day of WUF13 featured a comprehensive program of events covering the global housing crisis, the formation of safe and inclusive cities, climate resilience, artificial intelligence and urban governance, green urbanization, social equity, and sustainable transport.
One of the highlights of the third day was the signing of a sister-city memorandum between the Azerbaijani city of Shusha and the Turkish city of Trabzon.
The fourth day of WUF13 featured a broad program of events dedicated to urbanization, climate change, inclusive urban development, housing policy, and sustainable governance.
One of the important events of the UN Special Program for the Economies of Central Asia (SPECA) Cities Forum, held on the fourth day, was the announcement of Almaty’s official accession to the “Declaration of Intent on the Establishment of the SPECA Smart Climate-Resilient Cities Forum.”
Also, for the first time in WUF history and at Azerbaijan’s initiative, the “WUF13 NGO Forum: Global Partnership and Decision-Making” was held.
WUF13, which has attracted more than 40,000 registered participants from 182 countries, will continue until May 22. Held under the theme “Housing the world: Safe and resilient cities and communities,” the forum brings together governments, international organizations, experts, and representatives of civil society to strengthen global cooperation in the field of sustainable urban development.
