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Rural districts in the country have seen a prolonged trade deficit compared to the world which needs a fix in the coming years, IT software company Zoho’s CEO Sridhar Vembu said on Monday.

Comparing some aspects of the US-China economic situation in a post on X social media platform, Vembu said when China makes all the stuff and the US buys a lot more of the stuff than it makes, “that has a deep implication for the nature of jobs in the US”.

“The distortion of employment (and the very cultural fabric) is the most pernicious effect of prolonged trade deficits America has run,” said the Zoho CEO.

Here is the sobering news though when it comes to India.

“Every rural district in India has run a prolonged trade deficit with the world outside the district (including against urban India).

“When you do that for a long time, one consequence is the politics of handing out free money and free stuff. That is ‘token distribution’ the Indian way,” he emphasised.

However, “If we don't fix the fundamental trade deficit problem of rural areas, “our politics and our culture will get worse,” Vembu added.