GSP Benefits

India should accept the withdrawal of benefits under the US generalised system of preferences (GSP) scheme and avoid pushing for its reinstatement as the benefits for domestic exporters were marginal, think tank GTRI said on Monday. It also suggested that India should not seeks the resumption of the scheme in the upcoming India-US Commercial Dialogue on October 2. Commerce and Industry Minister Piyush Goyal is visiting Washington for the dialogue. He will co-chair the meeting with US Secretary of Commerce Gina Raimondo with participation from industries, startups, and SMEs from both countries. The scheme, it added, is primarily designed for low-income countries, with even major economies like China excluded. As a growing economic power, India should focus on broader, more strategic trade discussions rather than seeking concessions on relatively insignificant issues, it said. GTRI Founder Ajay Srivastava said the primary aim of the dialogue is to strengthen the bilateral commercial

GSP is America's oldest preferential trade scheme, which offered Indian exporters tariff-free access to the US until June, when all benefits were suspended

In June, the US terminated India's designation as a beneficiary developing nation under the key GSP trade programme

In the letter, the lawmakers said that they have a strong desire to see GSP eligibility for India reinstated

Following GSP withdrawal in June, manufactures face increased competition from Pakistan and Bangladesh, which continue to enjoy preferential treatment

On March 4, President Donald Trump announced that the US intends to terminate India's designations as a beneficiary developing country under the GSP programme