In a major set back to India, Trump administration has decided to remove India from the US Trade Privileges. Citing "failure of assurance", US President Donald Trump has ended the Preferential Trade Treatment for India under GSP from 5th June, 2019. The announcement on removal of special treatment status to India came from Washington on Friday.
What is GSP?
The privileges come under the Generalized System of Preferences (GSP), which had been allowing preferential duty-free imports of up to USD 5.6 billion a year into the US from the South Asian countries. India is the biggest beneficiary of the GSP program.
India's Response To Trump
Responding to Trump's decision, India called it as "unfortunate". Modi government has played down the Trump administration's decision to end Preferential Trade Treatment for India. Indian government said, "we will continue to build on our strong ties with the US, both economic and people-to-people. We are confident that the two nations will continue to work together intensively for further growing these ties in a mutually beneficial manner."
Now, it's a challenge for Piyush Goyal who just took charge as the Ministry of Commerce and Industry and how he will handle the issue of India-US economic ties.