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Home india Trump decides to withdraw India From GSP, How this decision affects India, Check inside
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Trump decides to withdraw India From GSP, How this decision affects India, Check inside

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US President Donald Trump has decided to withdraw India From GSP (Generally Extended System of Preferences). Trump has given this information to its parliament. Apart from India, Turkey is also in the list with one US is going to break business relationship. This decision by Trump has been given by US Trade Representative Robert Lighter.

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What is GSP?

Generally Extended System of Preferences (GSP) is a American trade program under which the United States imports non-tax goods for economic growth in developing countries. America has given this facility to 129 countries of world, from where 4800 products are imported. The United States formed the GSP on 1 January 1976 under the Trade Act 1974.

What is the whole process

“By statute, these changes may not take effect until at least 60 days after the notifications to Congress and the governments of India and Turkey, and will be enacted by a Presidential Proclamation,” the USTR said. It is the legal process of End GSP. Almost 2000 products of India and Turkey will be affected bu the decision of Trump. Auto parts, industrial valves and textile material are some of them.

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In the year 2017, India was the only country in the list of developing countries which had taken highest benefit under GST as India imported worth $ 5.7 billion goods without taxes. Some dairy and medical companies of US had complained that this profound effect on indigenous businesses.

How this decision affects India

This decision of Trump has been given at the time time when there is a general elections are about to elect in India. It can be difficult for Prime Minister Narendra Modi because he can worry about the economic progress of the country in the electoral atmosphere.

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