New Delhi: In a massive policy intervention that could reshape India’s real estate and job markets, the government’s apex think tank, NITI Aayog, has released a “Triple Booster” roadmap this week. As of Monday, January 12, 2026, the Aayog has formally recommended restoring the 100% Income Tax Exemption for affordable housing developers, a move that could significantly lower home prices for the common man.
But that’s not all. In its latest NITI Sandhan newsletter and series of reports released this January, the think tank has also unveiled a blueprint to create 4 million AI-first jobs and a strategy to attract 1.1 million international students to India by 2047.
If you are a home buyer waiting for prices to drop, a student planning your career, or a professional worried about AI, this comprehensive report covers every single detail of NITI Aayog’s new vision for 2026.
1. The Housing Revolution: Section 80-IBA Returns?
The biggest headline for the common man is the push for affordable housing. Real estate prices in metro cities like Mumbai, Delhi-NCR, and Bangalore have skyrocketed in the last two years. To counter this, NITI Aayog has proposed a “Fiscal Stimulus” for the sector.
A. Restoring 100% Tax Exemption
The report, titled “A Comprehensive Framework to Promote Affordable Housing,” strongly recommends bringing back Section 80-IBA of the Income Tax Act.
- What was it? This section offered a 100% tax holiday on profits earned by developers from approved affordable housing projects. It expired in March 2022.
- Why bring it back? The Aayog argues that without tax breaks, private builders have no incentive to build low-margin “affordable” homes (priced under ₹45 Lakh).
- Impact: If accepted in the upcoming Union Budget, this could reduce the cost of construction for builders by 15-20%, a benefit that can be passed on to buyers in the form of lower property rates.
B. Tax-Free Bonds for Cheap Loans
Another game-changing proposal is to allow the National Housing Bank (NHB) and HUDCO to issue Tax-Free Bonds.
- How it works: These bonds would allow NHB to raise money from the market at lower interest rates.
- Benefit: This cheap capital can then be lent to developers and home buyers as low-interest loans, making EMIs more affordable for the Economically Weaker Section (EWS) and Low-Income Group (LIG).
C. Land Reforms
The framework also suggests that state governments should earmark 10% of all residential land in Master Plans exclusively for affordable housing. It also proposes waiving stamp duty and land-use change charges for such projects to cut costs further.
2. Education Overhaul: “Vishwa Bandhu” Scholarships
India is currently facing a massive “Brain Drain.” A shocking NITI Aayog report titled “Internationalisation of Higher Education in India” reveals that for every 1 international student coming to India, 28 Indian students go abroad.
The Problem: ₹6.2 Lakh Crore Outflow
The report highlights that Indian students spend nearly ₹6.2 Lakh Crore annually on foreign education—a sum that equals 2% of India’s GDP! To reverse this trend, NITI Aayog has set a target to attract 1.1 million international students to India by 2047.
The Solution: 5 Big Reforms
- Vishwa Bandhu Scholarship: A new scholarship scheme to fund meritorious international students, similar to the UK’s Chevening or Germany’s DAAD.
- $10 Billion Research Fund: Creation of a “Bharat Vidya Kosh,” a sovereign wealth fund with a $10 billion corpus to fund world-class research in Indian universities.
- Fast-Track Visas: A single-window clearance system for student visas and “Academic Resident Visas” for foreign faculty to teach in India easily.
- International Campuses: Easing norms for top Indian universities (like IITs and IIMs) to set up campuses abroad and for foreign universities to set up campuses in India.
- Residential Hubs: Building “Global Student Villages” with international-standard hostels and facilities to make foreign students feel at home.
3. The AI Roadmap: “Digital ShramSetu”
While housing and education are long-term, the immediate challenge is Artificial Intelligence (AI). Instead of fearing job losses, NITI Aayog’s report “AI for Inclusive Societal Development” outlines how India can use AI to empower its workforce.
Mission Digital ShramSetu
This is a proposed National Mission designed to help India’s 490 million informal workers (carpenters, drivers, electricians, etc.).
- Goal: To use AI to match workers with better jobs, ensure fair wages, and provide social security.
- Tech Stack: It will use platforms like ONDC and UPI to create a digital history of a worker’s skills, allowing them to get loans and insurance easily.
4 Million “AI-First” Jobs
The report predicts that India’s tech sector is at a tipping point.
- The Risk: If we do not reskill, the IT services workforce could shrink by 1.5 million by 2031 due to automation.
- The Opportunity: If India moves fast, it can create 4 million new jobs in AI-native roles like “Prompt Engineering,” “Data Annotation,” and “AI Ethics Compliance.”
- Action Plan: The Aayog calls for a massive “National AI Skilling Mission” to train youth in these new-age skills starting from Class 6 onwards.
Why Does This Matter to You?
These reports are not just theoretical papers; they are the “pre-budget” wishlists that the Finance Minister often uses to draft the Union Budget.
- For Home Buyers: Keep an eye on the February Budget. If Section 80-IBA returns, hold your purchase for a few months as prices might correct.
- For Students: If you are planning to study abroad, check if new scholarships or “International” courses open up in India that offer the same quality at 1/10th the cost.
- For Workers: The “Digital ShramSetu” could be the next UPI-like revolution for finding work.
Final Verdict: A Vision for 2047
NITI Aayog CEO B.V.R. Subrahmanyam has made it clear: “We cannot become a $30 trillion economy by just selling software services or building expensive condos. We need to become a Knowledge Hub and a Manufacturing Powerhouse.”
The proposals released in January 2026 show a shift from “welfare” to “empowerment.” Whether it is tax breaks for builders or scholarships for foreign students, the focus is on bringing money and talent into India, rather than letting it flow out.
Frequently Asked Questions (FAQs)
Q1: What is Section 80-IBA for housing?
It is a section in the Income Tax Act that provides 100% tax exemption on profits to developers who build affordable housing projects. NITI Aayog has recommended bringing it back to boost the supply of cheap homes.
Q2: Will the government give cheap loans for housing?
The proposal suggests allowing NHB to issue Tax-Free Bonds. If implemented, this will lower the cost of funds for housing finance companies, which could lead to lower home loan interest rates for borrowers.
Q3: What is the Vishwa Bandhu Scholarship?
It is a proposed scholarship scheme by NITI Aayog to attract international students to study in Indian universities by covering their tuition and living expenses.
Q4: Is AI going to reduce jobs in India?
NITI Aayog warns that without reskilling, IT jobs could shrink. However, with the right training, the AI sector alone can create 4 million new jobs in India by 2030.
Q5: What is the Digital ShramSetu mission?
It is a proposed platform to connect India’s informal workers (daily wagers, gig workers) with better job opportunities and social security using AI and digital technology.