Some Key Facts on U.S.-India Trade

Posted by scapozzola on 11/08/2010

  • India has a steel policy to promote its industry, as well as a $60 billion call/service center industry built on outsourcing.
  • The U.S. goods trade deficit with India in 2010 will be more than double the $4.7 billion deficit in 2009.  Through August, 2010, the U.S. trade deficit with India had already reached $7.0 billion. 
  • Big U.S. companies are investing in India instead of the U.S.:
  1. Motorola performs 40% of its software development in India. 
  2. GM has 2 research labs in India.  Pfizer has outsourced significant drug development to India. 
  3. Microsoft employs more than 4000 workers in India, and its largest development center outside of the U.S. is in India. 
  4. Intel has 2500 R&D workers in India, with more than $1 billion in additional planned investments.
  1. "U.S. exporters continue to encounter tariff and nontariff barriers that impede imports of U.S. products."
  2. Regarding intellectual property rights, "India was listed on the Priority Watch List in the 2009 Special 301 report."
  3. "IIndia maintains restrictions on the export of certain high-grade iron ore. These restrictions reduce Indian exports of these inputs, and may reduce supplies on international markets for raw materials used in steel production. The Indian government appears to be using these measures to improve the availability and lower prices of inputs used by India's rapidly growing steel industry."

Said Alliance for American Manufacturing (AAM) Executive Director Scott Paul: "India is to American office parks as China is to American factories.  Unless we change course, we're going to see higher trade deficits, more job loss, and deeper frictions, despite periodic announcements about one-off business deals."

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