Rapidly growing population is a primary concern for countries like India. The growing population needs significant infrastructural developments like a rapid metro rail system and multi-story buildings. But it requires a large area of land. However, continuously saturating land in metropolitan cities needs underground spaces to meet growing land demands, created using deep excavations. Deep excavations are done for various cases, like underground metro stations, parking lots, subways, underpasses, etc. In the case of permanent excavation, especially in the case of metro stations, earth retention systems such as diaphragm walls are adopted. From existing literature, it has been observed that deep excavations are affecting the nearby structures. Hence, assessing the damage initiated due to deep excavation is necessary. The damage can be assessed using FEM software like PLAXIS 2D. This study examines the effect of excavation for underground metro stations with diaphragm walls of various thicknesses (800–1200 mm) on nearby locations using the Top-down and Bottom-up approaches. The effect of excavation on wall movements and nearby ground displacements is analyzed. The analysis shows that the Bottom-up approach predicts higher values for ground movements, wall deflection, normalized bending moment, and shear force w.r.t Top-down approach. This study can be taken as a reference by engineers for designing the deep excavation and limiting its effect on nearby.