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Discuss the issues with housing sector in the country. Could the new Model Tenancy Act fundamentally change the rental business and housing itself in the country?

Topic: GS-2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

5. Discuss the issues with housing sector in the country. Could the new Model Tenancy Act fundamentally change the rental business and housing itself in the country? (250 words)

Reference:  Business Standard

Why the question:

The article explains how the new Model Tenancy Act could fundamentally change the rental business and housing itself.

Key Demand of the question:

Discuss in detail the issues with housing sector in recent times in the country and explain the possible role that Model Tenancy Act can play.

Directive:

Discuss – This is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

Structure of the answer:

Introduction:

Start with a brief on housing sector of India.

Body:

House-building was marginal to the economy three decades ago. In most towns and cities, it was a state monopoly. As the mortgage business came into its own, housing finance rose quite sharply from 1% in 1991 to over 7% of GDP by about 2005 and now about 10%. With very low delinquency rates, it is one of the safest forms of lending.

Discuss the issues in the housing sector of India. Explain the efforts being made by the government.

Conclusion:

Conclude that if the housing sector is properly managed, it could become the bedrock of the economy — driving not just finance but demand a range of products and services.