India and U.S. to discuss GSP restoration issue to find solution, says Piyush Goyal

Union Minister of Commerce and Industry Piyush Goyal addresses the press conference on Export Credit Guarantee Corporation, in New Delhi on June 23, 2023.
| Photo Credit: ANI

India and the U.S. have agreed to discuss New Delhi’s demand for restoration of GSP benefits to domestic exporters and now both sides will commence discussions to find a solution, Commerce and Industry Minister Piyush Goyal said on June 23.

The previous Trump administration in the U.S. revoked the Generalized System of Preferences (GSP) from India in 2019. The GSP allows eligible developing countries to export duty-free goods to the U.S.

About 1,900 Indian products from sectors such as chemicals and engineering were getting duty-free access to the US market under the GSP, introduced in 1976.

The joint statement issued after the meeting of Prime Minister Narendra Modi and U.S. President Joe Biden in Washington said that India has highlighted its interest in the restoration of its status under the U.S. Generalized System of Preferences programme, which could be considered in relation to eligibility criteria determined by the US Congress.

The leaders supported intensifying the work to advance progress on issues related to the eligibility criteria, it said.

Mr. Goyal said that now it is a matter for both countries to pursue and engage in a dialogue.

But ultimately it’s the US Congress which will have to take a final decision “but discussions will now commence on that issue,” he told reporters in New Delhi.

The U.S. has assured that they will consider that and “we will discuss that and find some solution,” he added.

When asked about cooperation in semiconductor sector between India and the US, the minister said companies start with R&D, innovation, testing and packaging and then gradually decide on providing the end-to-end facility.

India will be a $100 billion semi-conductor market by 2030.

When asked if U.S. electric car maker Tesla has sought incentives after its chief Elon Musk met the prime minister in New York on June 21, he said “no such requests” have been received.

Tesla Inc, the world’s largest electric car producer, is looking to make a significant investment in India, said Musk, who saw India as holding more promise than any other large country around the globe.