US Tariffs Threaten Affordable Housing Sector

Proposed US tariffs on Indian exports could have a significant impact on affordable home sales in India, according to a report from realty consultant Anarock. The tariffs, aimed at Indian goods, threaten to reduce the competitiveness of products exported by Micro, Small and Medium Enterprises (MSMEs) to the US.

This situation is likely to lead to decreased business orders and affect the livelihood of workers employed by these enterprises, who form a major part of the affordable housing consumer base. In a statement released Monday, Anarock highlighted the declining sales and launches in the affordable housing sector following the COVID-19 pandemic.

With the imposition of a 50 percent tariff on Indian goods, the already struggling segment of homes priced at Rs 45 lakh or less could face further setbacks. The consultant emphasizes that employees of MSMEs, which comprise a significant portion of India's economic framework, are crucial buyers of these homes. Additionally, this development might hamper new affordable housing projects.

(With inputs from agencies.)