How Much Does the US Earn from India? What's the Truth Behind Trump's Claims?
US President Donald Trump has alleged that trade relations between India and the US are highly one-sided, claiming that India benefits more while the US gains little. However, a report by the Global Trade Research Initiative (GTRI) tells a different story.
Trump imposed a 50% tariff on Indian goods, reiterating that the trade benefits are skewed towards India. But the GTRI report not only dismisses these claims but also reveals that the US earns over ₹3.5 lakh crore (approx. $42 billion) annually from India.
What Are Trump's Claims and What's the Reality?
While Trump argues that India gains more from bilateral trade, GTRI states that India's trade deficit with the US is around ₹4 lakh crore. However, when the overall earnings are considered, the numbers flip in favor of the US. The actual data shows that the US profits significantly from India each year.
How Does the US Earn from India?
- Tech giants like Meta, Google, Apple, Amazon, and Microsoft earn between ₹1.3 to ₹1.8 lakh crore annually from India's digital market.
- American fast-food and beverage brands like Coca-Cola, McDonald's, Burger King, Pizza Hut, and Subway collectively earn around ₹1.3 lakh crore annually.
- Wall Street banks and top consulting firms collect between ₹68,000 crore to ₹1.3 lakh crore in fees every year from Indian businesses.
- Companies like Walmart, Dell, and IBM generate revenue of around ₹1.8 lakh crore through their Global Capability Centers in India.
- The US earns billions from Hollywood movies, pharmaceutical patents, online subscriptions, and defense deals in India.
- Indian students studying in the US contribute around ₹2.2 lakh crore annually to the US economy through tuition and living expenses.
How Much Tax Do US Companies Pay in India?
Trump has frequently accused India of imposing high tariffs on US products. However, GTRI counters this, stating that many American goods—including industrial products, almonds, and apples—were offered tariff-free access by the Indian government.
In fact, over 95% of US exports to India enjoy either zero or minimal tariffs, making Trump’s “unfair trade” claim factually incorrect.
Will Trump's Tariff War Continue?
The US economy is currently under pressure with a fiscal deficit exceeding 6%. Ongoing tariff wars and strained relations with allies could affect America's global dominance.
The national debt stands at $37.3 trillion, having increased by $2 trillion in just one year. Interest payments on the debt are now more than $1 trillion annually. With 30-year bond yields at 4.95%, the highest in decades, a prolonged tariff war may do more harm than good to the US economy.
In conclusion, contrary to Trump's claims, the US benefits immensely from its trade and economic ties with India. Prolonging trade disputes could backfire economically and diplomatically.