GAO-06-116 International Trade strongUstrong.S. and India Data on.pdf

United States Government Accountability Office GAO Report to Congressional Committees October 2005 INTERNATIONAL TRADE U.S. and India Data on Offshoring Show Significant Differences a GAO-06-116 October 2005 INTERNATIONAL TRADE Accountability Integrity Reliability Highlights U.S. and India Data on Offshoring Show Highlights of GAO-06-116, a report to Significant Differences congressional committees Why GAO Did This Study What GAO Found Trade in business, professional, The gap between U.S. and Indian data on trade in BPT services is significant. and technical (BPT) services For example, data show that for 2003, the United States reported $420 associated with offshoring needs to million in unaffiliated imports of BPT services from India, while India be accurately tracked, but a gap reported approximately $8.7 billion in exports of affiliated and unaffiliated exists between U.S. and Indian BPT services to the United States. data. The extent of and reasons for this gap are important to understand in order to address At least five definitional and methodological factors contribute to the questions about the magnitude of difference between U.S. and Indian data on BPT services. First, India and the offshoring and to analyze its future United States follow different practices in accounting for the earnings of development. Under the authority temporary Indian worke