Imitation jewellery and leather articles are leading product categories which are likely to bear the brunt of US government’s decision to withdraw GSP benefits from 5th June.
Reacting to the development, Ganesh Kumar Gupta, President, FIEO (the apex body of exporters) said that out of USD 6.35 billion value of exports from India to US under the GSP scheme in the last fiscal, net benefit to the tune of only USD 260 million were accrued by the Indian exporters and thus at macro level the impact of GSP withdrawal on exports to US would be minimal. However, in respect of products having GSP benefits of 3% or more, exporters may find it difficult to absorb the GSP loss.
Imitation jewellery (average GSP benefit 6.9%), Leather Articles (average GSP benefit 6.1%), Pharmaceuticals & Surgical instruments (average GSP benefit 5.9%), Chemical & Plastics (average GSP benefit 4.8%) and Agriculture: Basic & Processed (average GSP benefit 4.8%) are the leading product categories likely to be impacted. said FIEO President.
FIEO president also urged the government to provide some support to products where GSP loss has been significant advocating extension of Rebate of State & Central Tax Levies Scheme (RoSCTL) on such products on exports to US.