Global Firms Eye India Growth as Trade Agreements Boost GCC Investments

India’s evolving trade partnerships with major global economies are expected to significantly strengthen the country’s Global Capability Centres (GCCs) ecosystem and drive sustained demand for premium office space across key urban markets, according to a report by Colliers.

The development coincides with improved macroeconomic sentiment, as the International Monetary Fund recently raised India’s GDP growth forecast for 2026 to 6.3 per cent , while projecting further expansion to 6.5 per cent in 2027.

Trade Agreements: What They Mean

Ongoing trade engagements between India and partners such as the United States , European Union , and United Kingdom are currently in different stages of negotiation and implementation. These agreements broadly aim to reduce tariffs on industrial goods, ease restrictions in services trade, improve digital market access and create more favourable conditions for foreign investment.

For instance, discussions with the US include tariff reductions on industrial goods and easing of licensing restrictions for information and communication technology products. Negotiations with the EU focus on cutting tariffs on machinery, steel, chemicals and pharmaceuticals, alongside improved access for financial services firms. Talks with the UK involve tariff reductions on automobiles and provisions supporting legal, environmental and professional services.

Experts say that although the finer details are still evolving, such measures could reduce operational costs, improve market access and encourage multinational corporations to scale up their India operations through GCCs.

GCCs Emerging as Innovation Hubs

India’s GCC ecosystem is increasingly shifting from cost-driven outsourcing centres to globally integrated innovation hubs handling research, engineering, product development, artificial intelligence, advanced analytics and cloud computing.

This transition is reflected in office leasing trends. Since 2020, GCCs have leased about 117 million sq. ft. of Grade A office space roughly 38 per cent of total demand. Annual absorption by GCCs has grown from around 16 million sq. ft. in 2020 to nearly 30 million sq. ft. in 2025.

Industry projections indicate that annual GCC leasing could reach 35–40 million sq. ft. , potentially accounting for 40–50 per cent of India’s total office demand over the next few years.

US Firms Lead, Europe and UK Catching Up

US-based firms continue to dominate GCC expansion in India, contributing nearly 70 per cent of GCC leasing since 2020. Technology companies form the backbone of this demand, followed by BFSI players.

However, the report highlights a gradual diversification trend. EU-origin companies are expanding mainly in engineering and manufacturing functions, while UK-based firms are increasing their presence in BFSI and consulting services.

This sectoral mix is expected to broaden further as trade agreements improve regulatory clarity and reduce barriers in services and manufacturing sectors.

BFSI and Manufacturing to Gain Momentum

While technology-led GCCs will remain key drivers, analysts expect BFSI , engineering & manufacturing , and consulting firms to contribute a larger share of leasing in the coming years, indicating a shift toward more diversified demand.

Such expansion is expected to benefit India’s leading office markets Bengaluru, Chennai, Delhi-NCR, Hyderabad, Kolkata, Mumbai and Pune where GCCs already account for around 40 per cent of premium office demand.

Long-Term Outlook

Real estate experts note that India’s strong talent base, competitive operating costs and improving policy environment continue to position the country as a preferred global operations hub.

With trade agreements gradually taking shape and investment flows strengthening, GCC-led expansion is likely to remain a central pillar of India’s commercial real estate growth, supporting both office absorption and high-value job creation in the years ahead