SME Times is powered by   
Search News
Just in:   • Area under oil, gas exploration in India has jumped 76 pc in last 10 years: Hardeep Puri  • MSMEs hold the key towards becoming a Viksit Bharat  • India must build AI models to solve world challenges: Amitabh Kant  • Water level in TN's Mullaiperiyar dam rises sharply after heavy rain, flood alert issued  • Working on 'Act East' resolve with 'Act Fast' approach: PM Modi on Sikkim's statehood celebrations 
Last updated: 11 Mar, 2019  

Indo-Us.9.Thmb.jpg GSP withdrawal

India.US.9.jpg
   Top Stories
» MSMEs hold the key towards becoming a Viksit Bharat
» Centre directs e-commerce firms to analyse and remove dark patterns
» Indian stock market opens in green, Sensex above 81,500
» Cabinet okays interest subsidy on farmers' loans for 2025-26
» Restoration of RoDTEP benefits to boost MSMEs, enhance investors’ confidence: Assocham
Bikky Khosla | 11 Mar, 2019

US President Donald Trump last week announced that the US would end India's $5.6 billion trade concessions under the Generalised System of Preferences (GSP) programme. It was reported that the benefits would end in 60 days after notification to Congress and the Indian government. In support of its decision, the US accused New Delhi of not providing Washington "equitable and reasonable access" to its markets. So, how will the decision impact our exports?

The government has downplayed the likely effects of this withdrawal of benefits by the US for Indian exports. A top official from the Commerce Ministry reacted that the concessions availed under the scheme were "minimal" and therefore there would be no major impact on overall Indian exports to the US. This view sounds convincing as the total GSP benefits availed by India under the GSP programme was to the tune of $190 million on a trade $5.6 billion.

In a similar tune, an exporters' association has viewed that the GSP benefit withdrawal will have marginal impact on India's exports. It adds that India is getting tariff preference on 5,111 tariff lines out of 18,770 tariff lines in the US, but the tariff advantage was 4 percent or more on only 2,165 tariff lines. However, the association views, that the government should come out with incentives for those sectors where GSP tariff advantage was significant, particularly in the labour-intensive sectors.

Meanwhile, India said that the US went ahead with the decision although India was working out on an extensive, reasonable and meaningful package which covered almost all the US concerns. It is also pointed out that the decision will affect the price competitiveness of the US downstream industry as India is predominantly exporting intermediate and semi-manufactured goods to the US under the GSP. And ironically, a trade group even warned that ending GSP for India could end up helping China.

I invite your opinions.

 
Print the Page
Add to Favorite
 
Share this on :
 

Please comment on this story:
 
Subject :
Message:
(Maximum 1500 characters)  Characters left 1500
Your name:
 

 
  Customs Exchange Rates
Currency Import Export
US Dollar
84.35
82.60
UK Pound
106.35
102.90
Euro
92.50
89.35
Japanese Yen 55.05 53.40
As on 12 Oct, 2024
  Daily Poll
Do you think Indian businesses will be negatively affected by Trump's America First Policy?
 Yes
 No
 Can't Say
  Commented Stories
 
 
About Us  |   Advertise with Us  
  Useful Links  |   Terms and Conditions  |   Disclaimer  |   Contact Us  
Follow Us : Facebook Twitter