Govt should engage with US Congress to resolve GSP withdrawal issue: TPCI

The government should actively engage with the US Congress to resolve the issue of withdrawal of export incentives for Indian exporters, TPCI said Monday.

The demand comes in the wake of US decision to roll back export incentives provided under Generalised System of Preferences (GSP) from June 5.

Trade Promotion Council of India (TPCI) Chairman Mohit Singla said as the US is a major trading partner of India, the roll back of incentives under GSP programme should be reviewed.

He requested the government to engage with the US Congress on the issue of withdrawal of incentives, which is "in the interest of both countries".

"We are getting strong industry inputs from our US traders that the issue may be taken to the US Congress," he said in a statement.

The rollback of GSP benefits would not make any economic sense to the US, as it would hurt their industry more than that of India, he added.

Earlier, several members of the US Congress and companies had urged Donald Trump administration not to withdraw the GSP benefits to India as the move will increase input costs for American producers.

India in 2018 exported goods worth about USD 6 billion under the GSP programme.