Archive · 27 May 2025
GTRI Report: US Has Surplus with India Despite Deficit
The US government highlights a trade deficit with India, but a new report paints a different picture.
While the US buys more goods from India, the US actually profits when including revenue from services like education and tech.
The US receives significant money from Indian students, tech companies, and other sources, the report claims.
It suggests that India should negotiate trade deals with the US from a stronger position, given the US's benefits.
GTRI report challenges the focus on the US trade deficit with India.
The US has a goods trade deficit of around $45 billion with India.
The US earns an estimated $80-85 billion annually from India through various sectors.
Indian students contribute an estimated $25 billion annually to the US education sector.
Report suggests India should negotiate trade agreements with the US from a position of strength.
- Who
- The Global Trade Research Initiative (GTRI) and the US and Indian governments.
- What
- GTRI report claiming a 'hidden surplus' for the US with India.
- When
- Report released Monday, during ongoing trade talks.
- Where
- Trade between India and the United States.
- Why
- To clarify the US-India trade balance and inform trade negotiations.
US Trade Deficit Perspective
GTRI's Surplus View
Trade Balance Calculation
US Trade Deficit Perspective
Focuses on the $45 billion goods trade deficit.
GTRI's Surplus View
Includes earnings from services, education, and tech to show a $35-40 billion surplus.
- US Goods Trade Deficit with India
- Approximately $45 billion
- US Overall Trade Surplus with India (GTRI estimate)
- $35-40 billion
- US Earnings from India (annually)
- $80-85 billion
- US Earnings from Indian Students (annually)
- Approximately $25 billion
