India–US Trade Deal: A New Catalyst for Commercial Real Estate, GCCs and FDI Growth in India
The India–US trade deal announced in early February marks a significant shift in bilateral economic relations, with US tariffs on Indian goods reduced to 18%. This move enhances India’s competitiveness against export-heavy Asian peers and sends a strong signal to global investors. While the agreement is primarily trade-focused, its indirect implications for India’s real estate sector— especially commercial assets—are substantial.
By easing tariff pressures and improving export prospects in sectors such as textiles, chemicals, leather, and gems and jewellery, the deal is expected to stabilise macroeconomic conditions and boost investor confidence. Historically, improved trade sentiment and currency stability have translated into stronger capital inflows, benefiting both commercial and residential real estate markets. Reduced uncertainty also lowers downside risks for developers and institutional investors.
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Commercial real estate stands to be the biggest beneficiary. Rising exports and deeper integration into global value chains are likely to accelerate the expansion of Global Capability Centres (GCCs), engineering R&D hubs, data centres, and advanced manufacturing facilities. US-based companies already dominate GCC leasing activity, and continued expansion is expected to drive sustained demand for Grade A office space across India’s key markets.
Institutional investment trends further reinforce this outlook. Despite global volatility, total real estate investments in India reached a record $8.4 billion in 2025. US investors, in particular, significantly increased their exposure, reflecting long-term confidence in India’s fundamentals. A stronger rupee and reduced currency risk post-deal could encourage more foreign capital to return to Indian commercial assets.
Overall, while the trade agreement may not trigger an immediate residential boom, its medium- to long-term impact on commercial real estate is clearly positive. Higher FDI inflows, increased GCC activity, growth in data centres, and renewed interest from US-based real estate players position India’s property market to benefit meaningfully from the strengthening India–US economic partnership.
