Unveiling Trade Dynamics: How India Substantially Bolsters US Economy

The US maintains a USD 35-40 billion surplus with India when factoring in revenues from education, digital services, and arms trade, despite a reported trade deficit of USD 44.4 billion. GTRI highlights that India should confidently negotiate free trade agreements, considering the broader economic relationship rather than isolated figures.

An economic analysis reveals that the United States enjoys a USD 35-40 billion surplus in trade with India when accounting for sectors like education and digital services. This contradicts the narrative of a USD 44.4 billion deficit, suggesting India should approach trade negotiations with greater confidence.

The Global Trade Research Initiative (GTRI) states that the US benefits significantly from Indian spending on education, technology, and arms sales, which doesn't appear in basic trade statistics. India provides substantial earnings for America, making it a key contributor to US wealth, according to GTRI founder Ajay Srivastava.

Given the intricate trade dynamics, India is advised to demand more balanced terms in free trade negotiations, countering any calls for unilateral concessions. The broader trade relationship highlights India's crucial role in underpinning the US economy and should guide future diplomatic engagements.

(With inputs from agencies.)