GSP useful to both India and USA: CII
NEW DELHI: Patton Group Managing Director and CII National Committee on Exports & Imports Chairman Sanjay Budhia said on Thusday that continuation of GSP is beneficial to both India and the USA. Referring to news reports that the USA's Trump Government is contemplating withdrawal of generalized system of preference (GSP) to Indian exporters, Budhia pointed out that facts relating to GSP show the continuation of GSP would be beneficial to both countries.
GSP boosts the competitiveness of American manufacturers by lowering their costs. Approximately, two-thirds of US imports under GSP are raw materials, components, or machinery and equipment used by US companies to manufacture goods in America for domestic consumption or for export. GSP also helps American consumers by eliminating duties on a variety of usually inexpensive consumer goods, Budhia observed.
These benefits are real and tangible. US importers enjoyed nearly $730 million in savings on import duties under the GSP program in 2016.