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Know in detail about the GSP and its impact on India?

Wednesday - March 6, 2019 12:57 pm , Category : WTN SPECIAL
Being upset to India's 'Import Policies', Donald Trump excludes India from GSP list
Being upset to India's 'Import Policies', Donald Trump excludes India from GSP list

India exports only $ 1.9 crore worth of goods under GSP; not to have to face much loss

MAR 06 (WTN) – The decision of American President Donald Trump that he is excluding India from the list of countries that are taking advantage of Generalized System of Preferences (GSP), is a great shock among relationships between India and US bilateral trade. For your information, let you know that India's name was included in the list of countries that are taking advantage of the Generalized System of Preferences (GSP) program from the United States. This benefit is raised on products that are exported to the US.

According to US law after US President Donald Trump's decision, these changes will be effective from two months after the notification is issued. For your information, let you know that the countries included in this list are given special specialties in exports and the countries involved in this list are not charged on imports of a fixed amount.

US President Trump said about this stringent move, that he has taken this decision because India is no longer 'adhering to the legitimate eligibility norms'. For your information, let you know that America's GSP program began in the 70’s and since then India has been taking advantage of it.

India has always been the GSP's biggest beneficiary. About the GSP, US President Donald Trump says that he has taken this decision because he has not been able to get the ‘assurances’ from India that India will give 'equal' discounts to American products in its market. Trump has clearly stated that due to ‘restrictions’ in India, US is losing business.

But according to experts, the decision of the US to end the exemption of certain Indian products for import duty under GSP will have little effect on India's exports. For your information, let you know that India exports goods of $ 5.6 billion to USA under the GSP, but only $ 1.9 million worth of goods come under the category of no fees, so it is being said that there will be no major losses for India from this move of USA.

The items that can be affected by the move of United States are mainly medical equipment, dairy products and agricultural products. Here, on the demand of the US about medical equipment and dairy products, the Indian Government says that the Government wants a ‘logical solution’ in this matter, but it is required to maintain a 'balance' between concerns of the country’s public health and its need.

For your information, let you know that according to the rules of international trade, the developed countries provide benefits to the developing countries on the basis of non-mutual and no discrimination under GSP. Upon the removal of India from the list of GSP, US President Trump's plea is that India has been 'unsuccessful' in 'assuring' the United States of providing equitable and fair access to its markets. Here, in response to the American claim, the Government of India says that there is a need to establish 'proper balance' to meet the real needs of American suppliers.