Every time an Indian engineer writes code for a Silicon Valley startup, or a Bengaluru firm troubleshoots a New York bank’s software, money quietly flows westward. India’s tech brilliance may be lighting up the global stage—but behind the scenes, the United States is cashing in. From billion-dollar outsourcing deals to student tuition and software royalties, America earns massively from India’s digital rise. This isn’t just a partnership—it’s a profit engine.
Indian Tech Powers American Business
India’s IT sector is one of the largest in the world, with companies like TCS, Infosys, Wipro, and HCLTech providing services to over 75% of Fortune 500 companies—most of which are headquartered in the United States.
According to a joint report by Nasscom and IHS Markit:
- Indian tech firms generated $396 billion in U.S. sales in 2021
- They contributed $198 billion to the U.S. economy, more than the combined GDP of 20 U.S. states
- They directly employed 207,000 people in the U.S., with an average salary of $106,360 per year
Key Channels of U.S. Earnings from India
Here’s how the U.S. benefits financially:
| Channel | Description |
|---|---|
| Outsourcing Services | U.S. companies pay Indian firms for IT services, but often resell them at higher margins domestically. |
| Corporate Taxes | Indian firms operating in the U.S. pay taxes that support American infrastructure and programs. |
| STEM Investments | Indian companies have invested $1.1 billion in U.S. STEM education and workforce development. |
| Digital Platforms | U.S. tech giants like Google, Microsoft, and Amazon earn billions from Indian users via cloud services, ads, and app sales. |
| Education & IP Royalties | Indian students and businesses pay for U.S. education, software licenses, and intellectual property rights. |
The Hidden Surplus
While trade debates often focus on goods, the real story lies in services and digital revenues. A 2025 report by the Global Trade Research Initiative (GTRI) revealed:
- The U.S. earns $80–85 billion annually from India through services, education, and digital platforms
- This creates a $35–40 billion surplus, contradicting claims of a trade deficit
Why It Matters
India’s tech sector is not just exporting code—it’s exporting value, jobs, and innovation. But the U.S. earns significantly from this relationship, often in ways that aren’t visible in traditional trade statistics. As India negotiates future trade deals, understanding these hidden flows of money and influence is crucial. It’s not just about exports—it’s about leverage