Transforming Worker Housing: A Pathway to Manufacturing Growth

NITI Aayog's report recommends classifying worker accommodations near factories as residential units to reduce property taxes and utility tariffs, aiding in boosting the manufacturing sector's growth. It calls for policy amendments, including GST exemptions, VGF funding, and mixed-use zoning, to improve worker living standards and economic potential.

A recent NITI Aayog report advocates for the redesignation of worker accommodations near factories as residential units. This shift would allow for lower property taxes and utility rates, aimed at improving living standards and bolstering the manufacturing sector's growth.

The report, titled 'S.A.F.E (Site Adjacent Factory Employee) Accommodation - Worker Housing for manufacturing growth', identifies a lack of suitable housing as a barrier to worker migration, particularly for women, and proposes policy changes such as GST exemptions and mixed-use zoning regulations.

Recommendations include Viability Gap Funding and the leveraging of these funds to upgrade existing accommodations. The initiative, supported by Finance Minister Sitharaman's emphasis on rental housing and aligned with India's manufacturing expansion goals, seeks to enhance worker welfare and attract global investment.

(With inputs from agencies.)