Sources also said that issues can be sorted by holding bilateral dialogues as the US is important economic and strategic partner of India.
They added that India may seek two more months for withdrawal of export benefits.
The commerce ministry had said that the US move will not have a significant impact on exports to America as the benefits were only about $190 million annually.
India exported goods worth $5.6 billion under GSP last year, but India's total GSP benefits were to the tune of only $190 million.
GSP benefits are envisaged as non-reciprocal and non-discriminatory to be extended by developed countries to developing economies.
US President Donald Trump has said he intends to end the preferential trade status granted to India and Turkey, asserting that New Delhi has failed to assure America of "equitable and reasonable" access to its markets, an announcement that could be seen as a major setback to bilateral trade ties.
The US Trade Representative's Office has said that removing India from the GSP programme will not take effect for at least 60 days after notifications to Congress and the Indian government, and it will be enacted by a presidential proclamation.
As many as 3,700 products get GSP benefits but India exports only 1,900 items such as chemicals and engineering under that concession, which was introduced in 1976 by the US.
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.