New Delhi, May 26 -- New Delhi: US claims of a deficit in its bilateral trade with India -the reason it cites for imposing stiff tariffs-are misleading as Indians buy billions of dollars' worth of American services and arms, a think-tank said on Monday.

Global Trade Research Initiative (GTRI) said calculations must take into account the trade in both goods and services, whereas the US figures are on goods alone.

It said the US is actually sitting on a "hidden" economic surplus of $35-40 billion with India-challenging the narrative of a one-sided trade relationship where the US buys far more than India.

The report finds that the US earns $80-85 billion annually from India through sectors such as education, digital services, finance, int...