NITI Aayog's housing initiative for industrial workers will boost manufacturing workforce: ICEA

Safe, affordable, flexible and efficient housing for industrial workers is an important initiative by NITI Aayog, which is in line with the present and future needs of the domestic manufacturing sector, India Cellular and Electronics Association (ICEA) said on Saturday. NITI Aayog has released a comprehensive report on the critical role of safe, affordable, flexible and efficient (SAFE) housing for industrial workers in boosting India's manufacturing sector. The report addresses key challenges impacting workforce stability, productivity and inclusivity, which are essential to advance India's aspirations as a global manufacturing hub.

ICEA President Pankaj Mohindroo said, “This comprehensive framework by NITI Aayog offers actionable solutions to long-standing challenges, such as inadequate housing near industrial areas, which often results in workforce depletion, instability and underemployment. There is productivity.” Additionally, the report emphasizes gender-inclusive recommendations, which is an important step towards encouraging more women participation in the manufacturing workforce, an area where the electronics sector will greatly benefit, he said. The country is set to increase the contribution of its manufacturing sector to GDP from the current 17 per cent to 25 per cent as part of its long-term vision to achieve a developed India by 2047.

Some of the key regulatory and fiscal reforms proposed in the report include promoting mixed-use development in industrial areas to reduce commute times and improve access to workers and government with Viability Gap Fund (VGF) support. and encourage collaboration among private players, which can remove financial constraints and accelerate project development. It also proposes to reclassify worker housing under residential categories to enable lower taxes, utility rates and GST exemptions, making such projects more viable for private developers. “By addressing issues such as restrictive zoning laws, high operating costs and inadequate housing capacity, this report provides a roadmap to overcome the barriers that have historically limited industrial growth,” Mohindru said.