Trump's 26% Tariff Impact: Bengaluru's IT Sector and Real Estate Facing Challenges​​

The recent 26% tariff imposed by the Trump administration on imports from countries like India has raised concerns about its impact on India's economy. The effects are particularly noticeable in the IT sector and real estate markets.

On April 7, 2025, India's stock markets saw significant losses. The Nifty 50 index fell by 3.24%, while the BSE Sensex dropped 2.95%. These declines were mainly due to the uncertainty caused by the new U.S. tariffs.

IT Sector Challenges India's IT sector, valued at $283 billion, is facing difficulties because of these tariffs. There are worries that U.S. companies may cut back on spending, which would negatively affect Indian IT firms' revenues. This has caused a 9.15% drop in the Nifty IT index over the past week, marking the steepest decline in more than five years.

Impact on Bengaluru and Pune Cities like Bengaluru and Pune, which are known for their strong IT industries, are also feeling the pressure. The growth of the real estate markets in these cities is closely linked to the success of the IT sector. A slowdown in IT could lead to a drop in demand for housing, which would impact property prices and sales.

Despite these challenges, the Indian government is taking a diplomatic approach. Instead of imposing counter-tariffs, India is focusing on trade negotiations with the U.S. The government is likely to finalise a deal by autumn 2025.