India urges U.S. to renew GSP scheme
India has expressed to the United States that it must issue an immediate renewal of the US Generalised System of Preferences (GSP) programme that expired on July 31, 2013.
What is the importance of the Generalised System of Preferences (GSP) programme?
The GSP programme helps developing countries expand their economies by increasing exports to the U.S. It also aids U.S. businesses by lowering the cost of imported goods that are used as inputs in value-added US production. U.S. businesses imported $19.9 billion worth of products under the GSP programme in 2012, including many inputs used in U.S. manufacturing.
As per the recently released Trade Policy Agenda of the U.S. administration, helping developing countries grow and expand their economies through trade would also help the U.S. by providing its exporters greater opportunity to sell products to billions of new consumers abroad.
The U.S. holds 16 % of India’s total services imports. Indian imports of US services is expected to rise sharply in the coming years as India’s middle class market expands and key services sectors bring in further reforms.