New Delhi: The US decision to withdraw duty benefits on Indian products under the Generalized System of Preferences (GSP) programme will not have a significant impact on exports to America, a top government official said on Tuesday.
India exports goods worth USD 5.6 billion under the GSP, and the duty benefit is only USD 190 million annually, Commerce Secretary Anup Wadhawan said. India mainly exports raw materials and intermediate goods such as organic chemicals to the US, he said.
The response comes after the US government said it intends to end the preferential trade status granted to India "GSP withdrawal will not have a significant impact on India's exports to the US," the secretary told reporters here. The US demand for relaxation in norms for exports of medical devices and dairy products are non-negotiable to India.
US President Donald Trump has said he intends to end the preferential trade status granted to India and Turkey, asserting that New Delhi has failed to assure America of "equitable and reasonable" access to its markets, an announcement that could be seen as a major setback to bilateral trade ties.
The US Trade Representative's Office has said that removing India from the GSP programme would not take effect for at least 60 days after notifications to Congress and the Indian government, and it will be enacted by a presidential proclamation. As many as 1,900 Indian products from sectors such as chemicals and engineering get duty free access to the US market under the GSP, introduced in 1976....