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  •  India = US' Balanced-Trading Partner (2+ / 0-)
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    panicbean, EdgedInBlue
    Lots of unfair demagoguery about India (a sort of Swiftboating of India, if you will) has been going on in the final stretch of the campaign season, and so I wanted to share some charts and data with sources, and other information, for readers to go over and see that the US and India have a small and reasonably balanced trade exchange, and an overall mutually beneficial economic engagement between each other.

    Why India is a Balanced-Trading Partner of the US:

    A data presentation:

    A. US total exports and imports in services, compared to those with India:

    Note that the US has large surpluses in services trade.

    B. US total exports and imports in goods, compared to those with India:

    The US has large deficits in goods trade.

    C. Chart that shows that US-India trade (in combinded goods and services) is small and balanced:

    D. Same as (C), with deficits as percentages of the total yearly trade deficits plotted:

    E. The trade deficits (goods and services combined) situation with major trading partners with which the US has deficits: here, "Deficit " is the total deficit in a given year, and X_99_09 is the sum of the trade deficits for a given country over the 1999-2009 period (straightforward sum, not adjusted to the value of the dollar):

    F. Goods trade deficits for 2009. Countries ranked by decreasing trade deficit.

    G. Goods trade deficits for Jan-Jun 2010. Countries ranked by decreasing trade deficit.

    Data Sources (readers invited to explore them):
    -- BEA(.gov):
    -- Census(.gov):
    --- 2009 Goods Trade:
    --- 2010 Jan-Jun Goods Trade:

    See also: US-India Trade and Economic Relationship


    And a lot of American companies (including IBM, Boeing, Dell, HP, Lockheed Martin, GE, Westinghouse, etc) that are doing business in India are beneficiaries of US' trade interaction with India. To follow are some specific examples of American companies getting large chunks of Indian business, which helps and create American jobs in engineering other top flight areas. Keep in mind that India could have chosen to "give its business" to other alternatives (such as picking Airbus over Beoing) or "gone protectionist" and kept American vendors such as HP and Dell out of its markets, but such isn't the case.

    -- India, US finalising $5.8bn Boeing deal, REUTERS, Sep 22, 2010

    -- India, US defence deal set to get bigger, TNN, Sep 30, 2010

    -- India picks US engines over European for Tejas, TNN, Oct 1, 2010

    -- India's Bharti Airtel picks IBM for goods and services: IBM deal to support upto 500 mn global Bharti users, 28 Sep, 2010.

    Hillary Clinton: US to Build Nuclear Plants in India
    The US agreed to build two nuclear power stations and supply sophisticated weaponry to India when Hillary Clinton visited New Delhi.

    by Dean Nelson in New Delhi

    Lockheed Martin and Boeing are expected to benefit from the defence deal while General Electric and Westinghouse are expected to win substantial contracts to build reactors for two new nuclear power plants.

    India is desperate to increase its power generating capacity to fuel its growing economy.

    But the deal focuses on defence and civil nuclear energy agreements which could be worth more than $40 billion to American companies.

    IBM Leads India Server Market

     NWC News Network, Mar. 19 2009, 1230 hrs

    As per IDC's Asia/Pacific Enterprise Server Tracker, IBM has recorded a market share of 38.1 percent in terms of factory revenue.

    IBM recently announced that it has emerged as the leader in the India overall server market in terms of Factory Revenue in Q4 2008 (OND 2008 quarter) as per IDC's Asia/Pacific Enterprise Server Tracker, Q4 2008 released in March 2009.

    IBM recorded a market share of 38.1% in terms of Factory Revenue in the Indian overall server market registering a gain of 3 points year-on-year (Q4 2008 over Q4 2007). IBM maintained the number 1 position in the India non-x86 UNIX Server market segment ending the fourth quarter of 2008 with a 49.9% share in terms of factory revenue.

    IBM Sales in India:
    Servers & storage

    The fruits of the right moves could be seen through numbers. According to an IDC report, for the full year of 2009, IBM was at the second position in the overall server market with 31.6 per cent share with HP controlling 34.2 per cent. Sun Microsystem and Dell were at the third and fourth position, respectively. But in the last quarter of 2009, IBM was at the top position with 35.6 per cent market share ahead of HP that controlled 34.6 per cent.

    Further, IBM has been the leader in x86 blade segment with 46.5 per cent share during the year followed by HP with 41.4 per cent and Dell with 8.5 per cent share. Even in the non-x86 Unix server segment IBM continues to lead with 37.5 per cent market share as compared to HP with 35.3 per cent and Sun Microsystem with 27.2 per cent.

    In the external disk storage business, IBM controlled 31 per cent market share followed by EMC at 21.9 per cent, Sun Microsystem at 14.6 per cent, HP at 11.3 per cent, Netapp at 7.7 per cent, and Hitachi at 6.1 per cent.

    Software business

    In software business, IBM has evolved a project-based model. Anil Menon, Vice President, Channel - ISVDR & AI, IBM India/South Asia states that IBM's system integrator partners have increased and there has been a growth in signing up of enterprise license agreements by partners, and that there has been an escalation in the partner list to drive software solutions.

    IBM has brought in software solutions to the open distribution model for tier-2 partners to drive sales. It has created webinars, has defined the accounts clearly as partner-led and named, and has created verticalized frameworks to tap key industries, to effectively tap the mid-market opportunity.

    Dell passes HP in India PC sales for first time
    By John Ribeiro
    August 18, 2010 08:40 AM ET

    IDG News Service - Dell took the number one slot for the first time in the Indian PC market from Hewlett-Packard in the second quarter, on account of strong marketing and a solid base of channel partners, research firm IDC India said on Wednesday.

    HP has held the number one position in the Indian PC market every quarter since 2005, according to IDC India data.

    As we can see, American companies are not only getting tons and tons of Indian business, but they are also carving out huge market shares in India, which, as India grows, is to the short and long term benefit of the American economy and Americans' job security. The anti-India demogoguery on trade, globalization and jobs should therefore be put to rest.

    Clearly, the US cannot keep on piling up large trade deficits year after year, for decades on end, without eventually going under. Therefore, in order to restore the American economy and (re)create jobs here, the US needs to bring its trade with all major trading partners into as much balance as possible, and since trade with China is highly unbalanced as seen in the charts, that requires particular, commensurate and immediate attention.

    India and America share a mutually beneficial trade and economic relationship.

    by iceweasel on Sat Oct 16, 2010 at 05:47:16 AM PDT

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