Nirmala Sitharaman Boosts Housing Sector with ₹650 Crore Allocation to SWAMIH

Finance Minister Nirmala Sitharaman has allocated ₹650 crore to the Special Window for Affordable and Mid-Income Housing (SWAMIH) in the Union Budget 2026-27. This significant allocation is aimed at revitalizing the housing sector by providing crucial funding to stalled residential projects.

Launched in November 2019, after approval by the Union Cabinet chaired by Prime Minister Narendra Modi, the SWAMIH Investment Fund is a key government initiative designed to address the issue of unfinished housing projects. The fund operates by providing last-mile financing to ensure the completion of these projects, thereby delivering homes to thousands of beneficiaries.

Backed by the Ministry of Finance’s Department of Economic Affairs, SWAMIH has emerged as India’s largest residential stress-resolution platform. The fund has demonstrated strong deal execution, active asset management, and disciplined capital deployment. As of December 15, 2025, SWAMIH has fully committed its investible corpus, spanning over 145 projects across 30 cities.

The initiative is expected to deliver over 1 lakh homes, benefiting more than 4 lakh homebuyers. This addresses one of the sector’s most persistent challenges—projects left incomplete due to funding constraints. Significant progress has already been made, with 61,000 homes delivered across 110 projects, including more than 7,000 units for EWS/rehabilitation beneficiaries.

The fund has also achieved 55 full exits and 44 partial exits, highlighting its commitment to financial discipline while pursuing social impact. Economically, SWAMIH has unlocked over ₹37,400 crore in capital across 127 projects, supporting more than 90 million sq ft of ongoing development, nearly half of which falls under LIG and MIG housing.

The initiative has generated over 36,000 skilled and unskilled jobs, including 3,500 permanent roles, and contributed an estimated ₹6,900 crore to government revenues via GST, dues, and stamp duties. Its construction-led revival has also driven significant demand in allied sectors—over 20 lakh tonnes of cement and 5.5 lakh metric tonnes of steel—while adding more than 1.06 lakh trees as part of project-based green cover initiatives.

Importantly, the fund has demonstrated fiscal prudence, returning nearly 50% of its drawn capital to investors, including approximately ₹3,500 crore repaid to the Government of India. This allocation not only helps in the completion of housing projects but also ensures that the financial resources are used efficiently and effectively, contributing to the overall economic growth and social welfare of the country.