US-India Trade Relations: The Untapped 'Hidden Surplus'

The Global Trade Research Initiative (GTRI) has disputed US President Donald Trump's claims about the trade deficit with India, presenting evidence of a "hidden surplus" favoring the United States. The report argues that while the US recorded a USD 44.4 billion trade deficit with India for 2024-25, it misunderstood the broader economic relationship.

GTRI founder Ajay Srivastava asserts that focusing solely on goods trade provides an incomplete narrative, as the US quietly earns between USD 80-85 billion annually from India through education, digital services, and other sectors. Education alone brings over USD 25 billion from Indian students studying in the US annually.

Furthermore, US tech giants and financial institutions derive substantial revenue from operations in India. GTRI states that these massive earnings indicate that the US is not disadvantaged but rather a significant beneficiary of its trade relationship with India, urging India to approach trade negotiations with confidence.

(With inputs from agencies.)