New Delhi, June 4 -- The US terminated India's designation as a beneficiary developing nation under the Generalised System of Preference (GSP) trade programme, with effect from June 5. While the Centre has termed the move as "unfortunate", according to some industry observers, the US decision will hardly have any major impact on India's exports. No doubt, with US duty concessions to India under GSP amounting to around $260 million, our exporters need not to worry, but the development has some other dimensions as well.
As far as export is concerned, India shipped goods worth $51.4 billion to the US in 2018. Of this amount, exports drawing GST benefit amounted to $6.35 billion while net duty benefit amounted only to $260 million. So, overall...