NEW DELHI: The U.S. has renewed its generalised system of preferences (GSP), a programme under which Indian exports gets concessional duty treatment in America, exporters body FIEO said.
The move would help in boosting shipments to the U.S., which accounts for about 13 per cent of India's exports. Indian products will become competitive in the U.S. market. Domestic sectors which will be benefited from this move include certain textiles, gems and jewellery and chemicals.
The U.S.' GSP ended on July 31, 2013. Since then, Indian exporters were demanding renewal of this trade preference programme.
The programme has been renewed retrospectively from August 1, 2013 and it will be present till December 31, 2017, Federation of Indian Export Organizations (FIEO) President S C Ralhan said in a statement.
Welcoming the move, Ralhan said: "It will benefit Indian exports and will increase competitiveness of Indian goods covered under GSP in U.S. market. India will get duty advantage in respect of 3500 tariff lines (means products)".
The U.S. decision is a significant development at a time when India's exports continue to be in the negative zone.
Contracting for the seventh month in a row, India's exports dipped by 15.82 per cent in June to $22.28 billion.
The two-way trade between India and the U.S. stood at $64.26 billion in 2014-15.
However, products whose annual exports to the U.S. have reached $170 million, they would not be able to avail the benefit of this programme. Sectors which would be impacted from this decision include certain chemicals and pharmaceuticals sector.
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