Understanding the Impact of GSP Withdrawal on India’s Top Exports to the US



Shriya Chauhan | Observer Research Foundation

This brief analyses the impacts of the withdrawal of the United States’
Generalized System of Preferences (GSP) programme on India’s exports, domestic
production and employment. Until 5 June 2019, when the GSP withdrawal came into
effect, India was the largest beneficiary of the GSP of which it had been part since 1974.
A decline in exports to the US was anticipated as items under zero-tariff rate were
subjected to a higher rate after withdrawal of GSP. This brief conducts a sectoral analysis
of the top nine Indian exports to the US and shows that six out of them were unaffected
by the GSP withdrawal. Indeed, exports in the Electrical machinery sector grew. The
brief recommends reinstating GSP foreign trade policies instead of putting retaliatory
tariffs on US products.

ORF GSP Withdrawal

Shriya Chauhan is a consultant at the World Bank

To view the original report, please click here.