US President Donald Trump will be visiting India on 24-25th of this month. But before this tour, America has given a big shock to India. Actually, America has made a big change in its trade law. It has excluded India from the Generalized System of Preference (GSP) list.
First, let’s understand what is this GSP list?
This is such a list, which America has prepared by including some developing or underdeveloped countries around the world. Countries whose small or big business is also continuing with America.
# GSP is America’s oldest trade program with more than one country. 46 years old.
# This list is being maintained since 1974. India was also included in this list till now.
What benefits do countries gain by joining the GSP?
The GSP list includes 119 countries. The United States allows import duty exemption for products coming from these 119 countries. Purpose – to boost the business of countries with a weak economy. America is a big market. From there, other countries continued to benefit from the ease of getting business. Profit in business increased, employment increased, the economy improved.
What was India’s position on this list?
India has been included in this list from the beginning. Being on the list, when more than 1900 products of our country went to America for sale, then they were completely or substantially exempted from paying import duty there. Now India is out of this list, that is, all such benefits are closed.
Why is India excluded?
Last year, US President Donald Trump said, “The purpose of our GSP list has always been that countries that are developing or underdeveloped, whose economy is weak, they should get help in business.” This list was made many years ago. There are many countries, whose economy has reached good conditions in the meantime. Nevertheless, these countries have been continuously taking advantage from us.
Davos Summit held in Switzerland Trump said,
You still consider China as a developing country. India is also considered a developing country. Whereas the size of the economy of these two countries has become much larger now. At the same time, we are taken as benefits from developed countries. According to this, then we are also a developing country.
Is India alone excluded?
No. A total of 25 countries have been excluded from the list. Among them, other big names besides India are China, Argentina, Brazil, Bulgaria, Malaysia, South Africa, South Korea, Thailand.
Meaning India is no longer developing? Evolved?
No no… nothing of the sort. Understand the simple thing that America does not have the right to declare any country developed, undeveloped, developing. All this work belongs to the United Nations (UN) and in its list, India is still in developing countries.
This GSP list of America is just a business preference list from their side, in which the countries with weak economy get benefits. Now by linking the weak economy with developing or underdeveloped, many times this list is called ‘List of developing countries’ in the moving sense. But there is nothing to be confused about. In the list of those, it is ‘all healed’.