BrahMos WORLD INDIA MADHYA PRADESH BHOPAL WTN SPECIAL Astrology GOSSIP CORNER SPORTS BUSINESS FUN FACTS ENTERTAINMENT LIFESTYLE TRAVEL ART & LITERATURE SCIENCE & TECHNOLOGY HEALTH EDUCATION DIASPORA OPINION & INTERVIEW RECIPES DRINKS FUNNY VIDEOS VIRAL ON WEB PICTURE STORIES
WTN HINDI ABOUT US PRIVACY POLICY SITEMAP CONTACT US
logo
Breaking News

US President Donald Trump gets 'solid answer' from India in business!

Monday - August 12, 2019 4:07 pm , Category : WTN SPECIAL
India's exports increase even after GSP profit status’ being removed
India's exports increase even after GSP profit status’ being removed

Indian products’ ability to compete globally increased 

AUG 12 (WTN) - As you know, America is the world's largest economic power. There is so much monopoly of the US trade all over the world that international trade takes place in the US dollars only. From time to time, America keeps doing politics of pressure and restrictions on other countries in order to establish its commercial domination in the whole world.

For your information, let you know that a few days ago, the US had abolished the benefits given to India under the Generalized Preferential System. The US President Donald Trump thought that his bet would cause India a loss. But, the thinking of the US President Donald Trump has proved completely wrong. What is the whole matter? Let us explain this in detail.

First of all, let us tell you what is the Generalized Preferential System? And how was India benefiting from this system of America? GSP means the Generalized Preferential System which is the oldest and largest system of preference given by the US to other developing countries in trade. It was started by American in the year 1976 to increase economic growth in developing countries. Through this system, countries with GSP status are allowed to export thousands of goods to the US at no charge.

The US President Donald Trump had felt that India had benched its products in the US at a cheaper price through this system, but the US did not get any benefit in exporting goods to India in return. Citing the example of Harley Davidson bike, US President Donald Trump said that the Indian Government imposes heavy duty on the import of this bike of the US, which is injustice.

On 5 June this year, on the basis of several other similar arguments, the US had abolished the incentive facility for Indian products under the Generalized Preferential System (GSP). Due to this system, 1,900 products from India were getting this facility. The US President Donald Trump said that ending the GSP status given to India, the Indian Government had not assured the US to provide goods and access to its market. However, some US lawmakers had advised President Trump not to withdraw the status from India, because doing so would require US industrialists to pay an additional fee of $ 300 million every year.

After the US President Donald Trump abolished the GSP benefit status given to India, he probably thought it would harm India, but it did the opposite. Actually, exports of goods from India to the US under this system have increased by 32 per cent in the month of June this year. The TPCI (Trade Promotion Council of India), referring to the data of the USITC (United States International Trade Commission), has said that the exports from India of Indian commodities which were benefiting from GSP, has increased against June last year, whereas in 2018, exports of these items were $ 49.57 million in the month of June last year, while in June this year, the exports increased to $ 65.74 million.

According to TPCI, the 32 per cent increase in exports of goods exported from this grade after GSP profit status is over, is significant in itself. This is why, because earlier it had claimed a benefit of $ 19 crore under the GSP. After the withdrawal of GSP, this increase has off set the gains of $ 16.17 crore. This means that it is now left to gain a profit of only $ 2.83 crore. According to the information, the products whose exports have seen a boom; they include machines and equipment, leather and skins, plastic rubber, pearls, aluminum and precious stones etc.

It was being said that the Indian products would face stiff competition in the US after the GSP benefit status from the US ended. But, the way India's exports to the US increased 32 per cent in June this year compared to last year indicating that the Indian products have the potential to compete globally even after GSP profit status was over. This means that India, which is the seventh largest economy in the world, is now able to compete globally.