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Business EconomyPosted at: Aug 11 2019 4:31PM


GSP withdrawal pumps 32 pc export growth: TPCI

New Delhi, Aug 11 (UNI) Trade Promotion Council of India (TPCI) has said India’s exports to the US on GSP withdrawn products has registered 32 per cent growth, YOY for the same period in June 2019.
Citing the data from United States International Trade Commission (USITC), TPCI Chairman Mohit Singla said, ''This is a very interesting trend as out of USD 190 million value of GSP benefit claimed earlier, the growth has already covered USD 161.74 million, month on month for June 2019 compared to last year; leaving a thin margin of USD 28.26 million only.''

India was claiming GSP benefit on 1945 products at United States’ 8 digit level for the value USD 6.275 billion of exports from India. The share of GSP benefitted products in total exports from India to the US was 12 per cent, which was withdrawn with effect from June 5, 2019.
Mr Singla said, ''This is a clear indication that Indian products have the full potential to compete globally and not solely dependent on support, contrary to the perception. TPCI is a strong advocate of the phasing of subsidies and reducing government support. The need is incentivising new sunrise sectors like furniture and electrical, by creating a cluster-based mega ecosystem, which can churn export growth completely.''
The era of continuing fixation of labour incentive sectors should be over, as their growths have already flattened, despite sustained support, he added.

United States International Trade Commission data shows the total US import from India is USD 54.35 billion in 2018. The US imports from India in June 2019 (for value on those tariff lines on which GSP was claimed in 2018) is USD 657.42 million compared to the same period in 2018 which was USD 495.67 million, reflecting an increased growth of USD 161.74 million YOY.

Further, Mr Singla said ''Surprisingly, 952 items (products) showed an increase compared month on month for June 2018- 19. The major products which have shown increase are; plastics rubber, base metals (aluminum), machines and equipment, transport equipment, hides and leather, Pearls and precious stones.''

Earlier, Commerce and Industry Minister Piyush Goyal, had said, ''India accepts the decision of the US to withdraw duty-free benefits to its exporters gracefully and will work towards making the exports competitive. India is now evolving and moving out of the crutches... We believe we can be export competitive at our own strength or at the strength of our own comparative advantage.''

Mr Singla at the time of withdrawal had said, the withdrawal of benefits ''will not'' make much difference as Indian exports are all geared up to take this challenge.
''Even the US was benefitting from the GSP regime since the intermediary inputs provided by India helped keep its industry competitive.
''This withdrawal of GSP is only going to inject the estimated additional burden of USD 190 million, which is minuscule compared to India’s overall export to the US,'' he had said.

India was one of the largest beneficiaries of the GSP programme for duty-free imports to the US.
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