US restoration of GSP benefits to India is the need of the hour

An early solution to restoring US GSP benefits to Indian exporters is the need of the hour as it would help boost bilateral trade further, Sanjay Budhia, chairman of the CII National Committee on EXIM, said on Wednesday.

India and the US have agreed to discuss New Delhi’s request to restore Generalized System of Preferences (GSP) benefits to domestic exporters, and now the two sides will begin talks to find a solution. The previous Trump administration in the US stripped India of the GSP in 2019. The GSP allows eligible developing countries to export duty-free goods to the United States.

Budhia said about two-thirds of US imports under the GSP are raw materials, components or machinery and equipment used by US companies to manufacture goods in America for domestic consumption or export. GSP is also helping American consumers by eliminating tariffs on a range of normally inexpensive consumer goods. He added that these benefits are real and tangible. “Both sides have agreed to discuss and find a solution together. “The earliest solution is the order of the day,” said Budhia, who is also a managing director of Patton Group.

He added that given the tremendous opportunities for cooperation between the two nations, there is a need to accelerate the economic partnership to reach the $500 billion goal by 2030.

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