Impact of Withdrawal of GSP

The benefits under the GSP scheme were withdrawn for India by U.S. from 5th June 2019.

In 2018, India exported goods worth of USD 6.3 billion (as per USTR figures) to U.S. under the GSP programme, which was about 12.1% of India’s total exports to the U.S. The average duty concessions accruing on account of GSP were about USD 240 million in 2018, which was about 3.8% of India’s exports to the U.S. availing the GSP benefits.

The impact varies across products, depending on the individual product level concessions which were availed under the GSP. However, so far the cumulative exports under the GSP tariff lines have not declined in the post GSP withdrawal period (June – Oct 2019) as compared to the corresponding period of the previous year.

Trade related issues are a part of ongoing economic relationship, and will continue to be discussed and addressed as a part of the regular bilateral trade engagement between India and the US.

This information was given by the Minister of Commerce and Industry, Piyush Goyal, in a written reply in the Rajya Sabha today.