US Has Around $40 bn Surplus With India After Adding Commercial Earnings
American tech giants, banks, consultancies, and Global Capability Centers make billions of dollars annually from their businesses in India, while Indian students also spend billions for education and other expenses in the US. Altogether, the US should be raking in $80 -85 billion from these businesses
Chennai: Despite a $45 billion merchandise trade deficit with India, the US has a $35-40 billion surplus with India when all commercial earnings are calculated. US tech giants, financial institutions, brands, and movies rake in around $80-85 billion from India.
The US has been projecting just the merchandise trade deficit with India, while ignoring the businesses done by large US firms in India. The US is home to 1873 companies with market capitalization of over $1 billion and they earn not just from the country, but across the globe.
“What few people understand is that we do very little business with India, but they do a tremendous amount of business with us. In other words, they sell us massive amounts of goods, their biggest “client,” but we sell them very little - Until now a totally one-sided relationship, and it has been for many decades. The reason is that India has charged us, until now, such high Tariffs, the most of any country, that our businesses are unable to sell into India. It has been a totally one-sided disaster!”, Trump wrote in Truth Social.
While a merchandise trade deficit exists with the US, when all commercial earnings are counted, America runs a healthy $35–40 billion surplus with India, finds GTRI.
American tech giants, banks, consultancies, and Global Capability Centers make billions of dollars annually from their businesses in India, while Indian students also spend billions for education and other expenses in the US. Altogether, the US should be raking in $80 -85 billion from these businesses.
American technology giants such as Google, Meta, Amazon, Apple, and Microsoft take home $15–20 billion annually from India’s digital economy. US food brands led by KFC, McDonalds, Coca cola as well as several other US firms earn over $ 15 billion from Indian operations. US banks and global consultancies earn $10–15 billion in fees and Global Capability Centres of Walmart, IBM, Dell, and others generate another $15–20 billion booked in the US.
Further, Indian pharmaceutical companies pay billions of dollars for pharmaceutical patents and tech transfers from US firms such as Pfizer and Merck. Automakers also earn through licensing and services. Hollywood movies, streaming subscriptions, and defence contracts also add up to the revenues that flow to the US.
“On top of that, Indian students in US universities contribute over $25 billion each year towards tuition and other local expenses. Far from being shortchanged, it is America that profits handsomely from its economic engagement with India,” said Ajay Srivastava, founder, GTRI.
