The United States’ (US’) withdrawal of trade benefits under the Generalized System of Preferences (GSP) scheme will only have a limited impact on India’s overall export trade, according to analytical research major CRISIL.
In 2018, India’s goods and services trade with the US totalled $142.1 billion, with exports constituting $83.2 billion. In three key sectors, CRISIL found that while the competitiveness and margins of exporters may come under pressure, exports won’t be suddenly hit, remaining in sync with larger trends.
This includes the fast-paced growth in market share for gems and pharma exports and the rapid erosion of apparel shipments. The US accounts for over 15 per cent of India’s goods exports, but for the US, imports from India are barely 2 per cent of the pie.