US move to end India's preferential trade treatment will backfire: Experts

Overall impact of US move expected to be minimal on domestic industry

The US will end up hurting its own domestic industry that relies on cheaper material and goods from India, as duty free access is cut off for Indian products.

Exporters remained convinced that while loss of benefits under the Generalized System of Preferences (GSP) scheme will squeeze margins and make competitiveness difficult, the overall impact will be minimal on the domestic industry.

“India’s exports to the US stood at $50.57 billion in 2017 with a GSP tariff advantage of only $190 million. This is less than 0.4 per cent of our exports. Naturally, its withdrawal will have a marginal impact,”