US Gets $80-85 Billion From Transactions Other Than Trade With India: GTRI
Despite a $45 billion trade deficit, US earns up to $85 billion annually from India through education, tech, finance, and IP — GTRI urges recalibration of trade talks.
Chennai: While the US has a $45 billion trade deficit with India, it rakes in $80–85 billion every year from India through education, digital services, financial operations, intellectual property royalties, and arms sales - leading to a $35-40 billion surplus in financial transactions, finds GTRI.
Indian students studying in the US spend over $25 billion every year — about $15 billion on tuition and another $10 billion on living expenses.
US tech giants like Google, Meta, Amazon, Apple, and Microsoft bring in another $15–20 billion a year in sales from India’s booming digital market. These revenues come from digital ads, cloud services, app stores, software and device sales, and streaming subscriptions.
American banks and consulting firms, including Citibank, JPMorgan, Goldman Sachs, McKinsey, BCG, Deloitte, PwC, and KPMG, earn an estimated $10–15 billion revenue annually from their work in India’s financial sector, advising companies, managing corporate deals, and providing high-end services.
Global Capability Centers (GCCs) run by companies like Walmart, Dell, IBM, Wells Fargo, Cisco, and Morgan Stanley in India handle global operations in tech, finance, and analytics. While most work is done in India, much of the real economic value is booked in the US. GCCs earn $15-20 billion revenue yearly through India operations.
The U.S. pharma firms like Pfizer, Johnson & Johnson, and Merck earn $1.5–2 billion annually through patents, drug licensing, and technology transfer. Auto companies like Ford, GM, and component suppliers earn $0.8–1.2 billion through licensing and technical services.
Hollywood and US streaming platforms contribute another $1–1.5 billion through Indian box office sales, subscriptions, and content licensing.
Finally, US defence sales to India bring in billions more, although exact figures are often confidential.
“If the US insists on focusing solely on the trade deficit, then India should narrow the conversation strictly to tariff cuts and firmly refuse to entertain talks on government procurement, digital trade, intellectual property, and the many other areas where US firms stand to massively expand their profits inside India,” said Ajay Srivastava, founder, GTRI.