GSP fallout

Govt must seek to restore competitive edge of exports

Trade relations between India and the US have continued to be an issue. The US administration has confirmed that India will be no longer be considered a developing nation for the purpose of benefiting from the Generalised System of Preferences (GSP). The GSP provides tariff-free access to the US market for companies from developing countries in certain sectors. But, the US has removed India from the GSP because it has not assured the US that it will provide reasonable and equitable access from America to its markets. This is an odd reason since the whole point of the GSP is