Purbalee Dutta 
Affordable housing in India, already under pressure, faces a deeper crisis due to the US imposing steep 50% tariffs on Indian exports. These tariffs directly threaten MSMEs and SMEs, which employ over 260 million people and contribute significantly to the GDP (30%) and exports (45%). These sectors—mainly textiles, auto parts, gems, engineering goods, and food processing—are now at risk of income losses and job cuts, making their workers less capable of purchasing homes.
According to ANAROCK Research & Advisory, this poses a serious risk to the affordable housing segment (homes priced under ₹45 lakh). Once a major growth driver, its share of sales dropped from 38% in 2019 to just 18% in H1 2025 across seven major cities. New launches also shrank from 40% to 12%.
The sector had not yet recovered from the COVID-19 blow, and now faces a new threat. With lower disposable incomes, homebuyer demand could fall, leading to weaker sales and rising loan defaults. MSME export success could be reversed, jeopardizing affordable homeownership. Experts warn that without policy support, this isn’t just a housing issue — it’s a broader threat to economic stability.
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