Trade Misreporting Between India and the USA: Hidden Capital Flows and Tariff Evasion

Key Points

• Trade misreporting results in substantial hidden capital flows between India and the USA, affecting economic relationships.
• The analysis shows that tariff evasion is prevalent, impacting both domestic industries and international trade regulation.
• Assessment using trade data over recent years highlights key discrepancies in reported figures, revealing underlying economic activities.
• This study underscores the need for improved regulatory frameworks to address gaps in trade reporting, emphasizing the economic consequences.