India is facing the challenge of providing adequate shelter to 20.5 million households from 2001 for its citizens. The housing sector in India for several decades faced a number of set-backs, such as an unorganized market, development disparities, a compartmentalized development approach and a deterrent rent control system. In this paper it is investigated, commingle these issues and propose a construction strategy for the Indian housing sector. The criteria to measure sustainability in this paper are cost effectiveness, efficient utilization of resources and environment friendliness. Affordability of a house and availability of building materials for its construction are the main determinants of access to shelter. This demands efficient use of resources at low cost. In this paper it is analyze whether it is possible to reduce cost, reduce emissions and generate employment in house construc¬tion. Recent Government policy statements have indicated that an annual supply of two million new houses would be required to meet the current shortage of housing in India. The construction technologies that are evaluated the ‘prefabrication’ construction technolo¬gies as well as low-cost techniques.