<?xml version="1.0" encoding="UTF-8" standalone="no"?><xbrli:xbrl xmlns:xbrli="http://www.xbrl.org/2003/instance" xmlns:in-capmkt="http://www.sebi.gov.in/xbrl/2022-03-31/in-capmkt" xmlns:in-capmkt-roles="http://www.sebi.gov.in/xbrl/RelatedPartyTransactions/2022-03-31/in-capmkt/in-capmkt-ent" xmlns:in-capmkt-types="https://www.sebi.gov.in/xbrl/2022-03-31/in-capmkt-types" xmlns:iso4217="http://www.xbrl.org/2003/iso4217" xmlns:link="http://www.xbrl.org/2003/linkbase" xmlns:negated="http://www.xbrl.org/2009/role/negated" xmlns:net="http://www.xbrl.org/2009/role/net" xmlns:nonnum="http://www.xbrl.org/dtr/type/non-numeric" xmlns:num="http://www.xbrl.org/dtr/type/numeric" xmlns:xbrldi="http://xbrl.org/2006/xbrldi" xmlns:xbrldt="http://xbrl.org/2005/xbrldt" xmlns:xl="http://www.xbrl.org/2003/XLink" xmlns:xlink="http://www.w3.org/1999/xlink"><link:schemaRef xlink:href="in-capmkt-ent-2022-03-31.xsd" xlink:type="simple"/><xbrli:context id="MainD"><xbrli:entity><xbrli:identifier 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scheme="https://www.sebi.gov.in/in-capmkt/ScripCode">540530</xbrli:identifier></xbrli:entity><xbrli:period><xbrli:startDate>2022-04-01</xbrli:startDate><xbrli:endDate>2022-09-30</xbrli:endDate></xbrli:period><xbrli:scenario><xbrldi:typedMember dimension="in-capmkt:RelatedPartyTransactionAxis"><in-capmkt:RelatedPartyTransactionDomain>RelatedPartyTransactionDomain3</in-capmkt:RelatedPartyTransactionDomain></xbrldi:typedMember></xbrli:scenario></xbrli:context><xbrli:context id="RelatedPartyTransaction_PY3"><xbrli:entity><xbrli:identifier scheme="https://www.sebi.gov.in/in-capmkt/ScripCode">540530</xbrli:identifier></xbrli:entity><xbrli:period><xbrli:instant>2022-03-31</xbrli:instant></xbrli:period><xbrli:scenario><xbrldi:typedMember dimension="in-capmkt:RelatedPartyTransactionAxis"><in-capmkt:RelatedPartyTransactionDomain>RelatedPartyTransactionDomain3</in-capmkt:RelatedPartyTransactionDomain></xbrldi:typedMember></xbrli:scenario></xbrli:context><xbrli:context id="RelatedPartyTransaction3"><xbrli:entity><xbrli:identifier scheme="https://www.sebi.gov.in/in-capmkt/ScripCode">540530</xbrli:identifier></xbrli:entity><xbrli:period><xbrli:instant>2022-09-30</xbrli:instant></xbrli:period><xbrli:scenario><xbrldi:typedMember dimension="in-capmkt:RelatedPartyTransactionAxis"><in-capmkt:RelatedPartyTransactionDomain>RelatedPartyTransactionDomain3</in-capmkt:RelatedPartyTransactionDomain></xbrldi:typedMember></xbrli:scenario></xbrli:context><xbrli:unit id="INR"><xbrli:measure>iso4217:INR</xbrli:measure></xbrli:unit><xbrli:unit id="pure"><xbrli:measure>xbrli:pure</xbrli:measure></xbrli:unit><in-capmkt:NameOfTheCompany contextRef="MainI">Housing and Urban Development Corporation Limited</in-capmkt:NameOfTheCompany><in-capmkt:ScripCode contextRef="MainI">540530</in-capmkt:ScripCode><in-capmkt:NSESymbol contextRef="MainI">HUDCO</in-capmkt:NSESymbol><in-capmkt:MSEISymbol contextRef="MainI">NOTLISTED</in-capmkt:MSEISymbol><in-capmkt:DateOfStartOfFinancialYear contextRef="MainD">2022-04-01</in-capmkt:DateOfStartOfFinancialYear><in-capmkt:DateOfEndOfFinancialYear contextRef="MainD">2023-03-31</in-capmkt:DateOfEndOfFinancialYear><in-capmkt:ReportingPeriod contextRef="MainD">First half yearly</in-capmkt:ReportingPeriod><in-capmkt:DateOfStartOfReportingPeriod contextRef="MainD">2022-04-01</in-capmkt:DateOfStartOfReportingPeriod><in-capmkt:DateOfEndOfReportingPeriod contextRef="MainD">2022-09-30</in-capmkt:DateOfEndOfReportingPeriod><in-capmkt:LevelOfRoundingUsedInFinancialStatements contextRef="MainD">Lakhs</in-capmkt:LevelOfRoundingUsedInFinancialStatements><in-capmkt:WhetherTheCompanyHasAnyRelatedParty contextRef="MainD">true</in-capmkt:WhetherTheCompanyHasAnyRelatedParty><in-capmkt:WhetherTheCompanyHasEnteredIntoAnyRelatedPartyTransactionDuringThePeriod contextRef="MainD">false</in-capmkt:WhetherTheCompanyHasEnteredIntoAnyRelatedPartyTransactionDuringThePeriod><in-capmkt:WeDeclareThatTheAcceptanceOfFixedDepositsByTheBansOrNonBankingFinanceCompanyAreAtTheTermsUniformlyApplicableOrOfferedToAllShareholdersOrPublic contextRef="MainD">NA</in-capmkt:WeDeclareThatTheAcceptanceOfFixedDepositsByTheBansOrNonBankingFinanceCompanyAreAtTheTermsUniformlyApplicableOrOfferedToAllShareholdersOrPublic><in-capmkt:WeDeclareThatTheScheduledCommercialBankAsPerRBICircularRBIDBR20151619DatedMarch032016HasAllowedAdditionalInterestOfOnePerCentPerAnnumOverAndAboveTheRateOfInterestMentionedInTheScheduleOfInterestRatesOnSavings contextRef="MainD">NA</in-capmkt:WeDeclareThatTheScheduledCommercialBankAsPerRBICircularRBIDBR20151619DatedMarch032016HasAllowedAdditionalInterestOfOnePerCentPerAnnumOverAndAboveTheRateOfInterestMentionedInTheScheduleOfInterestRatesOnSavings><in-capmkt:WhetherTheCompanyIsAHighValueDebtListedEntityAccordingToRegulation151A contextRef="MainD">true</in-capmkt:WhetherTheCompanyIsAHighValueDebtListedEntityAccordingToRegulation151A><in-capmkt:IfTheCompanyIsAHighValueDebtListedEntityAccordingToRegulation151AThenWhetherComplyingWithProvisoToRegulation239 contextRef="MainD">true</in-capmkt:IfTheCompanyIsAHighValueDebtListedEntityAccordingToRegulation151AThenWhetherComplyingWithProvisoToRegulation239><in-capmkt:NameOfListedEntityOrSubsidiaryEnteringIntoTheTransaction contextRef="D_RelatedPartyTransaction1">HUDCO LTD.</in-capmkt:NameOfListedEntityOrSubsidiaryEnteringIntoTheTransaction><in-capmkt:NameOfCounterParty contextRef="D_RelatedPartyTransaction1">Shri M. Nagaraj</in-capmkt:NameOfCounterParty><in-capmkt:RelationshipOfTheCounterpartyWithTheListedEntityOrItsSubsidiary contextRef="D_RelatedPartyTransaction1">Director &amp; Key management personnel of entity or parent</in-capmkt:RelationshipOfTheCounterpartyWithTheListedEntityOrItsSubsidiary><in-capmkt:TypeOfRelatedPartyTransaction contextRef="D_RelatedPartyTransaction1">Loan</in-capmkt:TypeOfRelatedPartyTransaction><in-capmkt:ValueOfTheRelatedPartyTransactionAsApprovedByTheAuditCommittee contextRef="D_RelatedPartyTransaction1" decimals="-5" unitRef="INR">0</in-capmkt:ValueOfTheRelatedPartyTransactionAsApprovedByTheAuditCommittee><in-capmkt:RemarksOnApprovalByAuditCommittee contextRef="D_RelatedPartyTransaction1">NA (Refer to Notes)</in-capmkt:RemarksOnApprovalByAuditCommittee><in-capmkt:AmountOfRelatedPartyTransactionDuringTheReportingPeriod contextRef="D_RelatedPartyTransaction1" decimals="-5" unitRef="INR">0</in-capmkt:AmountOfRelatedPartyTransactionDuringTheReportingPeriod><in-capmkt:AmountOfRelatedPartyTransaction contextRef="RelatedPartyTransaction_PY1" decimals="-5" unitRef="INR">0</in-capmkt:AmountOfRelatedPartyTransaction><in-capmkt:AmountOfRelatedPartyTransaction contextRef="RelatedPartyTransaction1" decimals="-5" unitRef="INR">0</in-capmkt:AmountOfRelatedPartyTransaction><in-capmkt:NatureOfTheLoansOrInterCorporateDepositsOrAdvancesOrInvestments contextRef="D_RelatedPartyTransaction1">Loan</in-capmkt:NatureOfTheLoansOrInterCorporateDepositsOrAdvancesOrInvestments><in-capmkt:InterestRateOfLoansOrInterCorporateDepositsOrAdvancesOrInvestments contextRef="D_RelatedPartyTransaction1" decimals="INF" unitRef="pure">0</in-capmkt:InterestRateOfLoansOrInterCorporateDepositsOrAdvancesOrInvestments><in-capmkt:TenureOfLoansOrInterCorporateDepositsOrAdvancesOrInvestments contextRef="D_RelatedPartyTransaction1">NA</in-capmkt:TenureOfLoansOrInterCorporateDepositsOrAdvancesOrInvestments><in-capmkt:TypeOfOfLoansOrInterCorporateDepositsOrAdvancesOrInvestmentsSecuredOrUnsecured contextRef="D_RelatedPartyTransaction1">Unsecured</in-capmkt:TypeOfOfLoansOrInterCorporateDepositsOrAdvancesOrInvestmentsSecuredOrUnsecured><in-capmkt:PurposeForWhichTheFundsWillBeUtilisedByTheUltimateRecipientOfFundsForEndusage contextRef="D_RelatedPartyTransaction1">NA</in-capmkt:PurposeForWhichTheFundsWillBeUtilisedByTheUltimateRecipientOfFundsForEndusage><in-capmkt:RelatedPartyTransactionExplanatory contextRef="D_RelatedPartyTransaction1">&lt;div id="TEXTBLOCK" style="width: 100%; height: 100%;" contenteditable=""&gt;&lt;div&gt;Loan not availed.&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;

&lt;p style="margin: 0cm; text-align: justify; line-height: normal;"&gt;&lt;span style='font-family: "Arial",sans-serif; font-size: 12pt; mso-fareast-font-family: "Times New Roman";'&gt;Remarks related to Column
"M":-&lt;/span&gt;&lt;/p&gt;

&lt;p style="margin: 0cm; text-align: justify; line-height: normal;"&gt;&lt;span style='font-family: "Arial",sans-serif; font-size: 12pt; mso-fareast-font-family: "Times New Roman";'&gt;The transaction with
the&amp;nbsp;related party were in the ordinary course of business of the Company
and were at arm length basis, hence the provisions of Section 188 of the
Companies Act, 2013, are not applicable. The details of related party
transaction have been disclosed in the Annual Financial Statements and&amp;nbsp;also
informed to the Audit Committee on quarterly basis. &lt;/span&gt;&lt;/p&gt;

&lt;/div&gt;&lt;/div&gt;</in-capmkt:RelatedPartyTransactionExplanatory><in-capmkt:NameOfListedEntityOrSubsidiaryEnteringIntoTheTransaction contextRef="D_RelatedPartyTransaction2">HUDCO LTD.</in-capmkt:NameOfListedEntityOrSubsidiaryEnteringIntoTheTransaction><in-capmkt:NameOfCounterParty contextRef="D_RelatedPartyTransaction2">Shri D. Guhan</in-capmkt:NameOfCounterParty><in-capmkt:RelationshipOfTheCounterpartyWithTheListedEntityOrItsSubsidiary contextRef="D_RelatedPartyTransaction2">Director &amp; Key management personnel of entity or parent</in-capmkt:RelationshipOfTheCounterpartyWithTheListedEntityOrItsSubsidiary><in-capmkt:TypeOfRelatedPartyTransaction contextRef="D_RelatedPartyTransaction2">Loan</in-capmkt:TypeOfRelatedPartyTransaction><in-capmkt:ValueOfTheRelatedPartyTransactionAsApprovedByTheAuditCommittee contextRef="D_RelatedPartyTransaction2" decimals="-5" unitRef="INR">0</in-capmkt:ValueOfTheRelatedPartyTransactionAsApprovedByTheAuditCommittee><in-capmkt:RemarksOnApprovalByAuditCommittee contextRef="D_RelatedPartyTransaction2">NA (Refer to Notes)</in-capmkt:RemarksOnApprovalByAuditCommittee><in-capmkt:AmountOfRelatedPartyTransactionDuringTheReportingPeriod contextRef="D_RelatedPartyTransaction2" decimals="-5" unitRef="INR">0</in-capmkt:AmountOfRelatedPartyTransactionDuringTheReportingPeriod><in-capmkt:AmountOfRelatedPartyTransaction contextRef="RelatedPartyTransaction_PY2" decimals="-5" unitRef="INR">0</in-capmkt:AmountOfRelatedPartyTransaction><in-capmkt:AmountOfRelatedPartyTransaction contextRef="RelatedPartyTransaction2" decimals="-5" unitRef="INR">0</in-capmkt:AmountOfRelatedPartyTransaction><in-capmkt:NatureOfTheLoansOrInterCorporateDepositsOrAdvancesOrInvestments contextRef="D_RelatedPartyTransaction2">Loan</in-capmkt:NatureOfTheLoansOrInterCorporateDepositsOrAdvancesOrInvestments><in-capmkt:InterestRateOfLoansOrInterCorporateDepositsOrAdvancesOrInvestments contextRef="D_RelatedPartyTransaction2" decimals="INF" unitRef="pure">0</in-capmkt:InterestRateOfLoansOrInterCorporateDepositsOrAdvancesOrInvestments><in-capmkt:TenureOfLoansOrInterCorporateDepositsOrAdvancesOrInvestments contextRef="D_RelatedPartyTransaction2">NA</in-capmkt:TenureOfLoansOrInterCorporateDepositsOrAdvancesOrInvestments><in-capmkt:TypeOfOfLoansOrInterCorporateDepositsOrAdvancesOrInvestmentsSecuredOrUnsecured contextRef="D_RelatedPartyTransaction2">Unsecured</in-capmkt:TypeOfOfLoansOrInterCorporateDepositsOrAdvancesOrInvestmentsSecuredOrUnsecured><in-capmkt:PurposeForWhichTheFundsWillBeUtilisedByTheUltimateRecipientOfFundsForEndusage contextRef="D_RelatedPartyTransaction2">NA</in-capmkt:PurposeForWhichTheFundsWillBeUtilisedByTheUltimateRecipientOfFundsForEndusage><in-capmkt:RelatedPartyTransactionExplanatory contextRef="D_RelatedPartyTransaction2">&lt;div id="TEXTBLOCK" style="width: 100%; height: 100%;" contenteditable=""&gt;&lt;div&gt;&lt;div&gt;Loan not availed.&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;

&lt;p style="margin: 0cm; text-align: justify; line-height: normal;"&gt;&lt;span style='font-family: "Arial",sans-serif; font-size: 12pt; mso-fareast-font-family: "Times New Roman";'&gt;Remarks related to Column
"M":-&lt;/span&gt;&lt;/p&gt;

&lt;p style="margin: 0cm; text-align: justify; line-height: normal;"&gt;&lt;span style='font-family: "Arial",sans-serif; font-size: 12pt; mso-fareast-font-family: "Times New Roman";'&gt;The transaction with
the&amp;nbsp;related party were in the ordinary course of business of the Company
and were at arm length basis, hence the provisions of Section 188 of the
Companies Act, 2013, are not applicable. The details of related party
transaction have been disclosed in the Annual Financial Statements and&amp;nbsp;also
informed to the Audit Committee on quarterly basis. &lt;/span&gt;&lt;/p&gt;

&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;</in-capmkt:RelatedPartyTransactionExplanatory><in-capmkt:NameOfListedEntityOrSubsidiaryEnteringIntoTheTransaction contextRef="D_RelatedPartyTransaction3">HUDCO LTD.</in-capmkt:NameOfListedEntityOrSubsidiaryEnteringIntoTheTransaction><in-capmkt:NameOfCounterParty contextRef="D_RelatedPartyTransaction3">Shri Harish Kumar Sharma</in-capmkt:NameOfCounterParty><in-capmkt:RelationshipOfTheCounterpartyWithTheListedEntityOrItsSubsidiary contextRef="D_RelatedPartyTransaction3">Key management personnel of entity or parent</in-capmkt:RelationshipOfTheCounterpartyWithTheListedEntityOrItsSubsidiary><in-capmkt:TypeOfRelatedPartyTransaction contextRef="D_RelatedPartyTransaction3">Loan</in-capmkt:TypeOfRelatedPartyTransaction><in-capmkt:ValueOfTheRelatedPartyTransactionAsApprovedByTheAuditCommittee contextRef="D_RelatedPartyTransaction3" decimals="-5" unitRef="INR">0</in-capmkt:ValueOfTheRelatedPartyTransactionAsApprovedByTheAuditCommittee><in-capmkt:RemarksOnApprovalByAuditCommittee contextRef="D_RelatedPartyTransaction3">NA (Refer to Notes)</in-capmkt:RemarksOnApprovalByAuditCommittee><in-capmkt:AmountOfRelatedPartyTransactionDuringTheReportingPeriod contextRef="D_RelatedPartyTransaction3" decimals="-4" unitRef="INR">290000</in-capmkt:AmountOfRelatedPartyTransactionDuringTheReportingPeriod><in-capmkt:AmountOfRelatedPartyTransaction contextRef="RelatedPartyTransaction_PY3" decimals="-3" unitRef="INR">682000</in-capmkt:AmountOfRelatedPartyTransaction><in-capmkt:AmountOfRelatedPartyTransaction contextRef="RelatedPartyTransaction3" decimals="-3" unitRef="INR">392000</in-capmkt:AmountOfRelatedPartyTransaction><in-capmkt:NatureOfTheLoansOrInterCorporateDepositsOrAdvancesOrInvestments contextRef="D_RelatedPartyTransaction3">Loan</in-capmkt:NatureOfTheLoansOrInterCorporateDepositsOrAdvancesOrInvestments><in-capmkt:InterestRateOfLoansOrInterCorporateDepositsOrAdvancesOrInvestments contextRef="D_RelatedPartyTransaction3" decimals="INF" unitRef="pure">0.04</in-capmkt:InterestRateOfLoansOrInterCorporateDepositsOrAdvancesOrInvestments><in-capmkt:TenureOfLoansOrInterCorporateDepositsOrAdvancesOrInvestments contextRef="D_RelatedPartyTransaction3">Different tenures</in-capmkt:TenureOfLoansOrInterCorporateDepositsOrAdvancesOrInvestments><in-capmkt:TypeOfOfLoansOrInterCorporateDepositsOrAdvancesOrInvestmentsSecuredOrUnsecured contextRef="D_RelatedPartyTransaction3">Unsecured</in-capmkt:TypeOfOfLoansOrInterCorporateDepositsOrAdvancesOrInvestmentsSecuredOrUnsecured><in-capmkt:PurposeForWhichTheFundsWillBeUtilisedByTheUltimateRecipientOfFundsForEndusage contextRef="D_RelatedPartyTransaction3">Purchase of house (HBA), Household articles (Welfare Advance) &amp; expenses on festival (Festival Advance)</in-capmkt:PurposeForWhichTheFundsWillBeUtilisedByTheUltimateRecipientOfFundsForEndusage><in-capmkt:RelatedPartyTransactionExplanatory contextRef="D_RelatedPartyTransaction3">&lt;div id="TEXTBLOCK" style="width: 100%; height: 100%;" contenteditable=""&gt;&lt;div&gt;HBA is unsecured, tenure is for&amp;nbsp;6 years &amp;amp; there are multiple rates of Interest (3% to 5.5%).&lt;/div&gt;&lt;div&gt;Welfare Advance is unsecured, tenure is for&amp;nbsp;3 years&amp;nbsp;&amp;amp; Interest is @ 4%.&lt;/div&gt;&lt;div&gt;Festival Advance is unsecured, tenure is for&amp;nbsp;1&amp;nbsp;year&amp;nbsp;&amp;amp; is Interest Free.&lt;/div&gt;&lt;div&gt;&lt;br&gt;&lt;/div&gt;&lt;div&gt;&lt;div&gt;

&lt;p style="margin: 0cm; text-align: justify; line-height: normal;"&gt;&lt;span style='font-family: "Arial",sans-serif; font-size: 12pt; mso-fareast-font-family: "Times New Roman";'&gt;Remarks related to Column
"M":-&lt;/span&gt;&lt;/p&gt;

&lt;p style="margin: 0cm; text-align: justify; line-height: normal;"&gt;&lt;span style='font-family: "Arial",sans-serif; font-size: 12pt; mso-fareast-font-family: "Times New Roman";'&gt;The transaction with
the&amp;nbsp;related party were in the ordinary course of business of the Company
and were at arm length basis, hence the provisions of Section 188 of the
Companies Act, 2013, are not applicable. The details of related party
transaction have been disclosed in the Annual Financial Statements and&amp;nbsp;also
informed to the Audit Committee on quarterly basis. &lt;/span&gt;&lt;/p&gt;

&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;</in-capmkt:RelatedPartyTransactionExplanatory></xbrli:xbrl>