Home / Knowledge / News / Textiles / India mulls ways to back sectors hurt by US GSP withdrawal

India mulls ways to back sectors hurt by US GSP withdrawal

04
Jun '19
India mulls ways to back sectors hurt by US GSP withdrawal
The Indian commerce ministry is reportedly exploring means to support sectors hit most by the US decision to withdraw the generalised system of preferences (GSP) scheme that allowed duty-free exports of more than 3,000 items. In its official reaction, the ministry said it was ‘unfortunate’ that New Delhi’s resolution on the issue was not acceptable to Washington.

“We have significant development imperatives and concerns and our people also aspire for better standards of living. This will remain the guiding factor in the government’s approach,” the ministry stated in a press release.

An unnamed government official, however, told a top English-language business daily that the loss suffered by India due to the decision will not be huge, but specific sectors that will take a hit need some hand-holding.

New commerce and industry Minister Piyush Goyal has been holding marathon meetings with officials on crucial issues over the weekend and is expected to discuss ways in which the export sector could be assisted following the US decision, the official said.

According to the Federation of Indian Export Organisations (FIEO), imitation jewellery, leather articles (other than footwear), pharmaceuticals and surgical instruments, chemical and plastics, and agriculture are among sectors that are likely to be worst affected by the withdrawal.

The sectors worst hit by the decision be extended benefits under the Rebate of State & Central Tax Levies Scheme (RoSCTL) to provide some compensation, FIEO has proposed.

A May 31 proclamation by US President Donald Trump stated the GSP scheme will be withdrawn for India from June 5. The move is in retaliation to the US Government’s belief that India is not providing equitable market access to US products.

While GSP withdrawal affects $6.35 billion worth of exports from India, exporters stand to lose net benefits worth $260 million annually. Congress spokesperson Randeep Singh Surjewala said the decision was notified to India on March 4, but the government did nothing to pre-empt it.

The US Government had made a number of demands, including softening of price caps on medical equipment, removal of certain mandatory certifications for dairy product exports, removal of import duties on cellular phones and roll-back of certain changes made in the e-commerce policy that imposed several restrictions on foreign players sourcing goods from vendors. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

Bangla trade bodies happy with proposed budget

Textiles | On 17th Jun 2019

Bangla trade bodies happy with proposed budget

Most trade bodies and business associations in Bangladesh are...

Pak PHMA rejects 17% sales tax on five key export sectors

Textiles | On 17th Jun 2019

Pak PHMA rejects 17% sales tax on five key export sectors

The Pakistan Hosiery Manufacturers Association has rejected 17 per...

Pic: Coresight Research

Information Technology | On 17th Jun 2019

Chinese consumers are more digital than westerners

Chinese consumers have higher expectations than ever before: they are ...

Interviews View All

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

The mid-term review of FTP is progressive, growth oriented

Frank Gossmann, Rotorcraft AG

Frank Gossmann
Rotorcraft AG

‘RT3 motto is: Do not check millimetres, check colours.’

Subhashini Srinivasan, The S Studio

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

N Nithyanandan,

N Nithyanandan

Incorporated in 1999, Purani Textiless Private Limited is one of the...

Ravi Kant Prakash,

Ravi Kant Prakash

A crucial role in the process of fabric manufacturing is played by the...

Puneet Jain & Yatin Jain,

Puneet Jain & Yatin Jain

Odhni is an indutva or ethnicwear brand started in 1999 by the Jain...

Mohammad Hassan, Biax Fiberfilm

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Kerem Durdag, Biovation II LLC

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Dave Rousse, INDA

Dave Rousse
INDA

INDA, a global association of the nonwoven fabrics industry, has been...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Aneeth Arora, Péro

Aneeth Arora
Péro

The Woolmark Company has partnered with handmade fashion label Péro and...

Robert Brunner, Devereux

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


June 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search