New Delhi, Jan. 23 -- India has suffered a significant setback in its exports to the European Union (EU) from January 1, 2026, as 87 per cent of its shipments to the bloc have begun attracting higher import duties following the suspension of Generalised Scheme of Preferences (GSP) benefits.

Under the GSP regime, Indian products earlier entered the EU at tariffs lower than the Most Favoured Nation (MFN) rates. With the suspension, exporters are now required to pay full MFN tariffs on most goods.

According to the Global Trade Research Initiative (GTRI), the withdrawal applies to 87 per cent of the value of Indian exports to the EU, resulting in an immediate loss of preferential market access, reported ANI.

Loss of Tariff Preference Acros...