The trade tensions between India and US are increasing every day. It marks the Tariffs as high as 50% on Indian exports. It threatens the affordable housing recovery of country.Affordable housing, described as houses priced as much as Rs 45 lakh, accounted for only 18% of income in India’s top 7 towns in the first half of 2025, down sharply from 38% in 2019, as per ANAROCK Group.
Tariffs worsens the India’s affordable housing crisis
In absolute phrases, 34,565 affordable houses sold out of a total 1.90 lakh structures for the duration of this period. Project launches have dropped even more steeply, from 40% of general launches in 2019 to just 12% this year.
The sector’s issues tied to India’s micro, small, and medium corporations (MSMEs) and small and medium corporations (SMEs)—the spine of the country export engine.
Together, they make a contribution nearly 30% of GDP and over 45% of exports, using more than 260 million peoples in labour-intensive industries includes textiles, engineering goods, auto components, gemstones and jewellery, and food processing. Workers in these industries form the demand for base for low-cost housing.
Trump Threaten MSME Export Boom
MSME exporters have surged 228% in the remaining 4 years, from 52,849 in FY 2020-21 to 173,350 in FY 2024-25. But tariffs risk cutting into export revenues, threatening job safety and salary levels across this personnel and erodes affordable housing demand for.
Dr. Prashant Thakur, Executive Director – Research & Advisory at ANAROCK Group, says, “This class of houses priced Rs 45 lakh or less was already gravely hit by the Covid-19 pandemic and continues to be suffering to find any semblance of company floor. Trump’s mercenary tariffs will snuff out even the dimmest ray of need for this section.”
The new Tariffs will throw up a roadblock on what need to be an open-pace motorway, and purpose a ‘chakka jam’ for the affordable housing system carrying the homeownership goals of India’s biggest reduction, adds ANAROCK.
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