US Earns Much More from India Than It Loses in Trade: GTRI Report Explained

India and the United States have a good trade relationship. But a new report from the Global Trade Research Initiative (GTRI) shows something surprising — the US makes a lot more money from India than it loses in trade. This is different from what the US government, especially President Donald Trump, usually says about the trade gap.

President Trump has often said the US has a much bigger trade gap with India than it really does. In February, he said the US loses $100 billion in trade with India, but the real number is less than half of that.

Let’s break it down in simple terms.

What Is the US-India Trade Deficit?

In 2024-25, India and the United States recorded $186 billion in total trade. Here’s how the numbers look:

India exported goods worth $86.5 billion to the US

India imported only $45.3 billion in goods from the US

This gives India a goods trade surplus of $41 billion.

In the services sector:

India exported $28.7 billion in services

Imported only $25.5 billion from the US

That adds another $3.2 billion in surplus.

So in total, India enjoys a $44.4 billion trade surplus with the US.

But the Real Story Is Bigger Than Just Trade Numbers

While the US shows a trade deficit in goods, it actually earns much more from India through other channels. According to GTRI, the US makes between $80 to $85 billion every year from India through:

Education (Indian students in US universities)

Technology services (Google, Apple, Meta, Amazon, Microsoft)

Financial and consulting firms

Royalties and intellectual property

Arms and defense deals

Let’s look at each of these in detail.

US Makes Over $25 Billion from Indian Students

Every year, thousands of Indian students move to the US for higher education. This is a huge source of income for America:

Around $15 billion from tuition fees

About $10 billion in living expenses

This means the US earns over $25 billion from Indian students annually. Education has become one of America’s biggest “exports” to India — even though it’s not counted directly in goods trade.

Tech Giants Earn Big in India

Companies like Google, Meta (Facebook), Apple, Amazon, and Microsoft make big money in India:

Their combined earnings are around $15 to $20 billion every year.

These companies provide digital services and earn through advertising, app stores, cloud services, and e-commerce platforms. Yet, they do not reinvest much in India, and most profits go back to the US.

Financial and Consulting Services Add Another $10–15 Billion

Top American companies such as:

Citibank, JPMorgan Chase, Goldman Sachs

McKinsey & Company, Deloitte, PwC, KPMG

…operate widely in India. They offer banking, investment, audit, tax, and advisory services. According to GTRI, these firms earn between $10 to $15 billion yearly from the Indian market.

US Companies Earn Billions from India in Pharma, Auto, and Entertainment

According to a report by GTRI, American pharmaceutical companies like Pfizer, Johnson & Johnson, and Merck make around $1.5 to $2 billion every year from India by using patents, licensing their medicines, and sharing medical technology.

Big US car companies such as Ford and General Motors, along with the companies that supply them with parts, earn about $800 million to $1.2 billion yearly from India through technology-sharing deals and licensing.

Also, Hollywood movie studios and US streaming platforms make between $1 billion and $1.5 billion each year from Indian viewers. This includes money from movie tickets, subscriptions, and selling content. Netflix alone is said to spend around $400–500 million every year to produce Indian shows and movies.

Intellectual Property, Software & Defense

The US also earns money through:

Royalty payments for software and patented technologies

Defense sales — India imports military equipment from the US

These sources add several billion dollars more to America’s earnings from India.

So, What’s the Final Balance?

Let’s compare both sides:

Area Amount (USD)

US Trade Deficit (Goods + Services) -$44.4 Billion

US Earnings (Education, Tech, Finance, etc.) +$80–85 Billion

Net Gain for US + $35–40 Billion

In short, the US is making a large net profit from its relationship with India, despite the trade deficit in goods.

Why This Matters for India

Many times, US politicians use the trade deficit to pressure India for unfair deals. But GTRI’s data shows that India is already giving the US a huge market and helping grow its economy.

Ajay Srivastava, GTRI’s founder, said:

> “India must not give in to hollow trade deficit arguments. We should negotiate on equal terms and use our market power wisely.”

India must now push for fairer and balanced trade agreements with the US — and protect its own economic interests.

Final Thoughts

The US-India trade relationship is deeper than it looks. While India shows a trade surplus, the US is earning big money from students, tech, services, and defense. It’s time for India to understand its strength and stand firm in trade talks.

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Source: > This article is based on a recent GTRI report on India–US trade relations released in May 2025.