This paper argues that India’s housing strategy should not be confined to merely creating affordable housing stock to tackle the shortage, as such an approach is myopic. Instead, a sound housing strategy must be informed by an adequate understanding of the multiple facets of housing poverty, including the factors that are responsible for the proliferation of slums. The blueprint offered in this paper understands an effective housing scheme as a means to correct market distortions and other anomalies that upset the incentive structure underlying the affordable housing segment in the country.