In talks with US, hope to restore India’s GSP tariff benefits by 2024: IACC President Bhasin

Exports to the US rose 2.81 percent to $78.31 billion in 2022-23 from $76.18 billion in 2021-22, while imports grew 16 percent to $50.24 billion over the same period

The Indo-American Chamber of Commerce (IACC) is in talks with the US Embassy in India and is hoping to restore India’s Generalised System of Preferences (GSP) status by 2024, IACC President Lalit Bhasin told Moneycontrol.

“This is one issue the Indo-American Chamber of Commerce has been taking up with the US Embassy here. We are speaking with the Ambassador and with the other senior officers, pressing for restoration. We are hopeful of a good outcome in 2024,” he said.

According to Bhasin, US officials have been “quite receptive” to the demand. “There is not much red tape involved so far as the US is concerned. So, hopefully, we will see some outcome of the talks soon,” Bhasin added.

The US has emerged as India's biggest trading partner in 2022-23 on account of the growing economic ties between the two countries.

According to data provided by the Commerce Ministry, bilateral trade between India and the US rose by 7.65 percent to $128.55 in 2022-23 from $119.5 billion in 2021-22. Bilateral trade stood at $80.51 billion in 2020-21.

Exports to the US rose 2.81 percent to $78.31 billion in 2022-23 from $76.18 billion in 2021-22, while imports grew 16 percent to $50.24 billion over the same period, the data showed.

“This trend is only set to rise as New Delhi and Washington remain engaged in further strengthening economic ties,” says Bhasin.

However, despite the resolution of seven WTO issues between the US and India this year, the restoration of GSP is a pending issue. In 2019, the US had withdrawn India’s preferential tariff benefits under the GSP, a US trade preference programme providing opportunities to specific countries to boost their trade. Following the US-India meeting in June, the two nations had agreed to discuss New Delhi's demand for the restoration of GSP benefits to domestic exporters.

Trade surplus

Major export items from India to the US include petroleum, polished diamonds, pharmaceutical products, jewellery, light oils and petroleum, and frozen shrimp.

Major imports from the US include petroleum, rough diamonds, liquified natural gas, gold, coal, waste and scrap, and almonds. America is one of the few countries with which India has a trade surplus. In 2022-23, India had a trade surplus of $28 billion with the US.