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US may withdraw zero tariffs for India

IANS  |  New Delhi 

India's FDI policy on and mandatory data localisation for global card payment companies seems to have rubbed on the wrong side as the US is thinking about withdrawing zero tariffs for India, sources said.

The US is reviewing the preferential arrangement for wherein the US charges no tariff on certain exports from to the US under the Generalised System of Preferences (GSP) and may soon withdraw the benefit, said an

The move is seen as a retaliation by US after revised its FDI policy on banning like and Walmart-owned from selling products of companies in which they have stakes from February 1.

The (marketplace entity) were also prohibited from mandating any company to sell its products exclusively on its platform only, as per the revised policy.

Trump, who is working towards reducing trade deficits with major economies and asking US companies to return home as part of his Make America Great Again campaign, is also not happy with the data localisation policy of India, the said.

The (RBI) guidelines say that all foreign payment companies such as and must store data locally for their businesses in the country.

US is likely to raise the issues of and data localisation in his visit to India next week. Currently, about $6 billion of exports from India get the special treatment of zero tariffs under the GSP.

The GSP is a US trade programme designed to promote economic growth in the developing world by providing preferential duty-free entry for up to 4,800 products from 129 designated beneficiary countries and territories.

--IANS

mg/nir

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, February 08 2019. 23:06 IST
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