India Urged to Drop GSP Demands Ahead of US Commercial Talks

Think tank GTRI advises India to forgo pushing for the reinstatement of the US Generalized System of Preferences (GSP) benefits, citing their minimal impact on domestic exporters. The upcoming India-US Commercial Dialogue is seen as an opportunity to focus on broader trade discussions rather than marginal concessions.

Think tank GTRI has recommended that India should accept the withdrawal of benefits under the US Generalized System of Preferences (GSP) scheme and avoid seeking its reinstatement, as the benefits for domestic exporters have been marginal.

According to GTRI, India should not pursue the resumption of the scheme during the upcoming India-US Commercial Dialogue on October 2. Commerce and Industry Minister Piyush Goyal will co-chair the meeting in Washington with US Secretary of Commerce Gina Raimondo, with industries, startups, and SMEs from both countries participating.

GTRI founder Ajay Srivastava emphasized that the dialogue's primary goals are to enhance the bilateral commercial partnership, boost investment opportunities, and improve supply chain resilience. Given these broader objectives, he argued, focusing on reinstating GSP benefits would detract from more significant areas of cooperation.

(With inputs from agencies.)