Trump targets India over trade yet again. But did you know the US secretly rakes in billions from New Delhi?

US President Donald Trump has focused India over the commerce deficit with america but once more.

Commerce deficits have emerged as one thing of a bugbear for Trump. His obsession with them, which started throughout his first time period, has seemingly reached new heights this 12 months.

Trump in April introduced his ‘Liberation Day’ tariffs, in a transfer that rattled buying and selling companions and quickly shook the world financial system.

Knowledge present that america in 2025
imported items price $56.3 billion from India , whereas New Delhi imported items price $22.1 billion from Washington. India thus has a commerce surplus of $34.3 billion with america this 12 months.

Nonetheless, do you know that america secretly mints billions from its commerce relationship with India?

Evaluation from the International Commerce Analysis Initiative (GTRI) exhibits that the US truly is at a $35–40 billion surplus with India when sure income streams are counted.

The GTRI says that is due to ’non-merchandise revenue’ that commonplace commerce calculations fail to take into consideration.

This contains earnings from training, digital providers, monetary and consulting operations, mental property licensing, arms offers and leisure.

“These large earnings don’t present up within the slender items commerce statistics. Whenever you issue them in, the US isn’t working a deficit with India in any respect — it’s sitting on a $35–40 billion surplus,” Ajay Srivastava, founding father of GTRI, defined.

US is definitely at a surplus 

As per GTRI’s estimates, the US takes in between $80-$85 billion every year from India by way of a number of income channels not listed within the bilateral items commerce steadiness.

Among the many largest contributors to America’s kitty comes from the upper training sector. Indian college students finding out in america spend a complete of over $25 billion yearly — round $15 billion in tuition charges and one other $10 billion in dwelling bills.

These college students attend main universities such because the College of Southern California, New York College, Purdue College and Northeastern. Their common yearly bills vary from $87,000 (₹76 lakh) to $142,000 (₹1.25 crore) per scholar. This education-related expense makes increased training one in all America’s greatest “exports”, although it doesn’t register in typical items commerce figures.

In the case of know-how, US digital giants reminiscent of Google, Meta, Amazon, Apple and Microsoft reportedly generate $15–20 billion in yearly revenues from India by way of varied providers.

These embrace cloud storage, digital ads, app retailer gross sales, subscription fashions and software program providers. These substantial earnings are additional elevated by what GTRI refers to as “restricted native guidelines on knowledge and taxation” — which permits the tech giants take most of their earnings again to america.

The US additionally earns $10–15 billion in annual income by way of funding banking, monetary advisory, and consulting providers in India. Companies reminiscent of JPMorgan, Goldman Sachs, Citibank, McKinsey, Deloitte, KPMG and PwC function throughout India’s rising monetary and company ecosystem, advising on mergers and acquisitions, threat administration and enterprise transformation.

From pharma to Hollywood: the neglected worth chains

Mental property and licensing contains one other main however much less seen supply of revenue. US pharmaceutical companies together with main gamers such Pfizer, Merck and Johnson & Johnson gross round $1.5–$2 billion every year through licensing agreements, patent royalties and know-how transfers with Indian companions.

In the meantime, US car corporations, together with Basic Motors and Ford, make between $800 million and $1.2 billion yearly by way of technical service charges and licensing offers with Indian auto producers and element suppliers.

Then you’ve tradition and media with Hollywood studios and American streaming platforms — reminiscent of Netflix, Amazon Prime and Disney — are estimated to earn $1–$1.5 billion yearly from India.

These earnings come up through field workplace revenues, content material licensing and rising subscription-based digital platforms concentrating on Indian customers.

International Functionality Centres (GCCs) & Defence

A serious however continuously ignored element of the US’ financial footprint in India is the huge community of International Functionality Centres (GCCs) operated by American multinationals. Corporations reminiscent of Walmart, Dell, IBM, Wells Fargo, Cisco and Morgan Stanley run these centres in Indian cities like Bengaluru and Hyderabad.

Whereas they make use of hundreds of Indian professionals in fields reminiscent of analytics, know-how growth and operations, the true financial worth is commonly recorded again within the US, slightly than in India.

Based on GTRI, these GCCs generate $15 – 20 billion yearly from India-based operations, most of which accrues to the US dad or mum entities.” These earnings, once more, are usually not factored into bilateral commerce deficit figures, although they signify a considerable influx of worth to the American financial system.

Along with the financial sectors talked about above, defence exports signify one other substantial however confidential element of US earnings from India. Whereas particular numbers stay categorized, the cumulative worth of American arms offers and know-how transfers to India has run into billions over the previous decade.

This consists of fighter plane, helicopters, surveillance techniques, and missiles — a lot of that are secured underneath the Overseas Army Gross sales (FMS) programme and different government-to-government channels.

What the info say

Regardless of this deep industrial engagement, the US continues to demand additional concessions from India in upcoming commerce negotiations.

Trump has repeatedly claimed
a $100 billion commerce deficit with India, though official knowledge places it at underneath $34 billion for 2025.

As GTRI rightly identified, the deficit narrative doesn’t seize the complete image of worth alternate between the 2 international locations.

“Removed from being a sufferer within the relationship, the US is a prime beneficiary,” Srivastava mentioned.

“If the US insists on focusing solely on the commerce deficit, then India ought to slender the dialog strictly to tariff cuts — and firmly refuse to entertain talks on authorities procurement, digital commerce, mental property and the various different areas the place US companies stand to massively develop their income inside India.”

Negotiating from a place of energy

The GTRI report urges Indian negotiators to push again in opposition to “hole deficit arguments” and to withstand strain to make unilateral concessions in areas like digital commerce, mental property rights, and market entry — areas the place American corporations are already dominant earners.

“India is not only a passive commerce accomplice however a significant contributor to American wealth throughout training, know-how, finance, and defence,” Srivastava identified.

“India can and will negotiate the free commerce settlement from a place of energy — rejecting hole deficit arguments and demanding truthful, balanced, and reciprocal phrases.”

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With inputs from companies