The imposition of a steep 26% tariff on Indian imports by the Trump administration has triggered significant economic concerns beyond trade alone. Analysts have raised alarms about the potential for a US recession, which could reverberate across global markets, with India’s tech-driven cities facing the brunt of the impact. As American businesses scale back their spending, Indian IT firms are experiencing slower project cycles and declining revenues.
This shift is already being felt in the stock market, with the Nifty IT index dropping by 9% this week — its largest weekly decline in five years. One of the notable consequences of this trade fallout is the potential impact on property prices in key Indian cities like Bengaluru and Pune, which are heavily dependent on the tech sector. Experts warn that the economic slowdown could dampen the demand for real estate in these cities, putting pressure on property prices.
As the situation unfolds, both the tech industry and the real estate market are bracing for continued challenges, with the fallout of the tariff imposition causing uncertainty for India’s economy.
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