India’s journey in the space of inclusive housing finance over the past three decades has been transformative – marked by milestones in policy, institutional, market, and product development, all of which embrace innovation, technology, and an overarching digital architecture. Housing has moved from being a welfare concern to an engine of growth, with shared responsibility between the Government and the Market. Though the sector has witnessed a paradigm shift from Government-provided housing to Market-provided housing, Housing Inclusion remains an unfinished agenda, as financial inclusion initiatives continue to be a work in progress. This is compounded by the fact that the grassroots-level data on the aspirations, behaviours, and barriers faced by Indian homebuyers – especially those operating outside the formal financial fold are still very disaggregated, fragmented, and unorganised. As a result, these voices that could offer a much-needed lens into what housing inclusion could truly mean on the ground are lost in the din and bustle of political sloganeering and quick-fix approaches that are often not sustainable.
The Elet’s Event on the critical theme of “Game changing” and the catalytic role of Game changers couldn’t be more timely, for which much compliment is due to the Organisers. It offers a wide canvas for Ideas Exchange and critical thinking on various aspects that have the potential to bring about a transformational and tectonic shift in scale and quality of production in the country, thereby enhancing the competitiveness of our economy and the nation.
Over the years, several key developments have shaped India’s housing finance ecosystem.
On the policy front, progressive housing and financial sector reforms – at the Centre and State levels – have laid the foundation for enabling access to housing finance for the people in the informal and low-income segment. Institutionally, the expansion of housing finance companies, banks, and secondary mortgage markets has helped deepen outreach, making housing finance more accessible and inclusive.
Market de-risking through building a robust institutional infrastructure and tools such as credit bureaus, CERSAI, SARFAESI, and mortgage guarantees has improved lender confidence, while consumer-facing protections like RERA have built trust in the system.
And on product development, innovations tailored to the needs of diverse income groups, supported by digital infrastructure, digital lending, and targeted subsidies, have improved accessibility and affordability of housing and housing finance.
Yet, challenges remain. Urbanisation, currently at 36% of the total population, is projected to touch nearly 50% by 2050. The availability of land and integration of housing into city planning and budgeting must become a national priority. The informal sector still lacks credit visibility, and India’s mortgage-to-GDP ratio remains low at 12%, compared to global benchmarks.
Housing inclusion must be seen not as a standalone goal, but as a strategic lever for long-term national growth. A Housing-Led Growth Model drives job creation, financial inclusion, consumption, and dignity of living, overall impacting the economy in multiple ways through powerful positive externalities and an unending virtuous cycle. In the words of Desmond Mathew, eminent American sociologist, “An affordable housing programme would be an anti-Poverty measure, human capital investment, community development plan and public health initiative, all rolled into one.” Conferences like these will help present a pivotal opportunity for all stakeholders to embed this Vision into action.
The intersection of financial Inclusion and Inclusive housing offers Challenge as well as an Opportunity. The emerging digital and AI ecosystem has significantly subsumed the role of consumer attributes and their behavioural insights that have become a dominant narrative in the housing finance conversation today. It’s not just about credit availability – it’s about trust, simplicity, and the ability to design solutions aligned to how people in the informal and rural/peri-urban areas think and make decisions.
Going forward, further reforms in land governance, infrastructure approvals, sustainable housing practices, and green building norms will be essential. We must also channel long-term investments – both domestic and international – into housing, through stronger institutional frameworks and public-private-Government collaboration.
Putting in place a sound, robust and resilient digital architecture for informal sector Housing in the country will significantly improve affordability and accessibility of housing and housing finance, helping the cause of Inclusive housing and strengthening the case for putting housing inclusion at the heart of India’s development model – a critical step toward achieving Viksit Bharat by 2047.
Views expressed by: Raj Vikash Verma, Former Chairman & Managing Director, National Housing Bank, Chairman, Adhaar Housing Finance Ltd.
