Weaponizing tariff as an instrument of economic subjugation shall be the legacy of Trump 2.0.
Donald Trump points fingers at India for maintaining a massive trade surplus. The US cries foul over a so-called $45 billion deficit in goods trade. However, the truth, as reported by the Global Trade Research Initiative (GTRI), flips the script entirely.
Ajay Shrivastava reports that When you factor in education, tech, defense, Hollywood, and digital services, the United States isn’t losing – it’s quietly raking in an estimated $80–85 billion annually from India.
Hence, if anyone needs tariffs to balance out the accounts – it’s India. Let’s break down the numbers, peel away the propaganda, and see how the US walks away with the bigger cheque while playing the victim-card!
The Deficit Lie Revealed by GTRI: A Numbers Game for Tariff Wars
Washington is telling the world that tariffs are a way to balance global trade. However, it presents a narrow picture of where the USA is exploited by the world. In the case of Bharat, it states that India is exporting $86.5 billion in goods and importing only $45.3 billion from the US. Thereby, creating a $41 billion surplus for India. This makes it seem like India benefits unfairly.
However, GTRI’s research reveals this is a half-truth because it ignores the vast flows of money India sends to the US through non-merchandise channels.
Once you factor in services, intellectual property, defense sales, tuition fees, digital tech revenues, and consulting, the deficit narrative collapses. In fact, the US may actually have a $35–40 billion economic surplus when all streams are considered. So, is Team Trump crying foul — or just dodging the full story?
Education: India Funds American Universities
Let’s talk about one of the biggest silent “exports” – education. Indian students studying in the US pour over $25 billion into the American economy every year. Approximately, $15 billion in tuition and another $10 billion in living expenses is recovered from Indian students.
This spending doesn’t appear in goods trade data, but it’s real money fueling the US education and housing sector.
With universities like USC, NYU, Purdue, and Northeastern charging between $87,000–$142,000 per student annually, India is effectively subsidizing America’s elite college economy. Yet when India negotiates trade deals, the US demands more concessions, as if India is the beneficiary.
Tech, Defence & Services: India’s Money-Making Machine for America
India is a digital goldmine for American tech giants. However, this truth is never explored by the Tariff War team. Google, Amazon, Microsoft, Meta, Apple – they all earn $15–20 billion annually from Indian users. Whether it’s cloud services, digital ads, app store purchases, or SaaS models, the profits flow back to Silicon Valley, aided by India’s liberal tax and data policies.
Add another $10–15 billion earned by American firms like JPMorgan, Goldman Sachs, McKinsey, Deloitte, and other consulting and financial players operating in India.
Their advisory services dominate the M&A and finance sectors. On top of that, US pharmaceutical and automobile firms make billions more through licensing and tech transfers. Hollywood and streaming platforms (Disney+, Netflix, Amazon Prime) quietly bring in another $1–1.5 billion a year from Indian subscribers.
Then comes defense – a sector shrouded in secrecy, but critical.
Reportedly, India signed billions worth of deals with American defense firms. All of these don’t reflect in trade balance sheets, but every fighter bullet sold means profits flowing to Lockheed Martin and Boeing – not Hindustan Aeronautics.
Profits Imported Yet Tariff Wars Continue!
Over 1,500 Global Capability Centres (GCCs) are set up by US companies in India. These hubs are run by firms like Walmart, Dell, Cisco, IBM, and Wells Fargo. The firms provide employment to lakhs of Indian engineers and analysts. While they create jobs locally, the real economic value is repatriated back to US headquarters.
Firstpost reports that these GCCs may generate $15–20 billion in annual value, yet none of it is reflected in India’s export earnings.
In short, India provides the talent, but America takes the profit.
India also earns from American tourism and remittances, but the scale is not comparable. For instance, the US had a travel trade surplus of $10.8 billion with India in 2022 — meaning Indians spent more in America than Americans spent in India.
Bottom line? America’s profit from India is real, deep, and far beyond the surface.
Final Word – It’s Time India Negotiated from Strength
While Trump rants about deficits, the real story is this: the US enjoys a quiet economic windfall from India. Tariff is his weapon of oppression. However, the truth of the trade surplus is never explored if it benefits the USA! Bharat pays dearly for education, tech, finance, entertainment, and defense. Thereby, contributing to the US economy!
India should no longer approach trade talks with team trump in a defensive posture.
Any tariff on Bharat shall impact the US economy more than Indian economy! The days of US hegemony are almost over. With Trump’s weaponization of tariff – the decline of US economy shall be accelerated!! As Union Commerce Minister Piyush Goyal leads negotiations on a new Bilateral Trade Agreement, it’s time to call out the fallacy of the trade deficit and push back against unfair demands.
The numbers are on India’s side — and so is the truth.
It’s time New Delhi negotiates from strength, not guilt.