About 0.5 per cent of India’s apparel exports to the United States will not continue to enjoy the benefits as the United States has removed GSP (Generalised System of Preferences) for Indian exports.
According to Sanjay K. Jain, Chairman of Confederation of Indian Textile Industry, the only main item to be affected is woven silk garments for women. The Confederation is following up the issue with the Central Government. “The impact of removal of US GSP on India’s apparel exports to the United States will be marginal. However, we continue to take up the issue with the Commerce Ministry,” he said.
As many as 15 varieties of ready-made garments were covered under the GSP. The tariff on these varies from 0.86 per cent to 14.60 per cent and India was getting duty free access. These 15 products contribute to 0.46 per cent of India’s apparel exports and the women silk dress constituted more than 50 per cent of it. The Confederation will appeal to the Ministry to take steps to maintain status quo, he said.