The extension of the Generalised System of Preferences (GSP) is expected to have only a limited impact on tariff relief for Indian exports, according to the Federation of Indian Export Organisations (FIEO).
FIEO said that while the continuation of the preferential trade scheme provides some support to exporters, the overall tariff benefits are modest as a large share of India’s exports already enter key markets under low or zero duty structures. The trade body noted that only select product categories are likely to see marginal cost advantages from the extension.
Exporters also face growing challenges from non-tariff barriers, compliance requirements and increased competition from countries that enjoy broader preferential access under free trade agreements. As a result, the GSP extension alone is unlikely to significantly alter India’s export competitiveness.
FIEO emphasised that deeper trade agreements, market diversification and improvements in logistics and ease of doing business would be more effective in boosting exports than reliance on limited tariff concessions under preference schemes.