An early solution for restoration of GSP benefits by the US to Indian exporters is the need of the hour as it would help further boost the bilateral trade, Chairman of the CII national committee on EXIM Sanjay Budhia said on Wednesday.
India and the US have agreed to discuss New Delhi’s demand for restoration of Generalized System of Preferences (GSP) benefits to domestic exporters and now both sides will commence discussions to find a solution. The previous Trump administration in the US revoked GSP from India in 2019. GSP allows eligible developing countries to export duty-free goods to the US.
Budhia said about two-thirds of the US imports under GSP are raw materials, components, or machinery and equipment used by US companies to manufacture goods in America for domestic consumption or for export. GSP also helps American consumers by eliminating duties on a variety of usually inexpensive consumer goods, he said adding these benefits are real and tangible. “Both sides have mutually agreed to discuss and find a solution. The earliest solution is the need of the hour,” Budhia, who is also Managing Director of Patton Group, said.
He added that as there are huge opportunities of cooperation between the two nations, there is a need to fast-track the economic partnership to achieve the target of $500 billion by 2030.