Despite the importance of housing, it hasgenerally received very low priority in India'spublic policy and investment program, which haschanged frequently since independence in 1947. Although the government has embarked on avariety of innovative housing programs andpolicies, especially for the lower-incomesegments of the population in urban areas, thecoverage of these programs and schemes ismarginal as compared to the overall housingrequirements of the urban population. Aconcerted effort by the public and privatesectors has not been able to keep pace with thegrowing demand for urban housing, especiallythat market segment accessible to the urbanpoor. The most visible manifestations of stateand market failure are the numerousunauthorized housing settlements scattered inand around the large cities of India. Thispaper reviews the role of the state, the marketand non-governmental organizations (NGOs) inthe provision of housing for low-income groups.It is found that formal housing agencies inboth the public and the private sector areneither building fast enough to meet demand norcheaply enough to reach the poor. As aconsequence, an informal sector has emerged inalmost all cities in India.