What is GSP and Full Form with GSP Countries List

Published on:

by: Admin

You can find detailed information about the Generalized System of Preferences (GSP) and a comprehensive list of eligible countries for your reference. I can confidently verify if India is eligible for GSP and provide you with relevant information from the FAQs section to help you better understand the process.

GSP full form is Generalised system of preferences which is a non law binding and non-agreement clause-based rule through which numerous developed countries around the world provide low-cost tariffs to other imported goods and services from developing countries.

This measure has been implemented with a clear objective in mind – to provide both developing and developed countries with ample opportunities to grow and expand their businesses while simultaneously reducing the cost of import tariffs.

The plan simply explained where developed countries such as the UK, USA provide developing countries like India low import and export tariff rates on selected industrial goods and services.

What is GSP

You might know that the Generalised System of preferences well known as GSP is an idea that presented at UNCTAD in 1964 with aim to provide developing countries with low tariff rates in the industrial markets of developed countries.

In India, This was instituted from the year 1971 with 13 countries’ schemes out of which the United States of America was one. But due to selected reasons, they withdrawn from India whose worth said to be 5.6 Billion worth or exports. While the objective of GSP stands to:

  • Help developing countries to expand their exports and increase their income from exports
  • Provide developing countries a chance to export and expand their industrialisation, products
  • These two factors in term will help any developing country to increase their economic growth.
GSP Full Form
GSP Full Form

GSP Countries List

Generalised system of preferences GSP is one of the most effective ways for countries to continue internal trade. As of this year we have more than 35 countries who unified to continue under GSP to India and they listed below.

SI.NoName of the Country
3Czech Republic
16United States of America
19Republic of Belarus
22Republic of Bulgaria
25Russian Federation
31European Union (EU*)
36United Kingdom

Is India Eligible for GSP?

One of the important things to note is that India is a developing country and there are more than 35 countries in the Generalised System of preferences. Out of these 35 have provided their scheme to India while among them USA has removed its for certain reasons.

The United States of America removed its scheme which costs around $70 million for both the agriculture and handloom sector that varies to around 50 products.

As per recent updates, Joe Biden and his government is making efforts to bring India back to its GSP scheme in 2021.

The reasons developed countries are making efforts to import Indian goods is because since there is a reduction on the import tariff then the product price would be reasonable and it would be more competitive in their market.

GSP Providers in India

The USA has removed its GSP for India, out of the 35 nations that provide schemes in India.

Why was India removed from GSP?

According to the Trump’s administration in 2019, the Generalised System of preferences scheme removed for India as the required improvements not made. Thus, they terminated the GSP scheme to India in June, 2019.

What is GSP India USPC?

It is a well-established fact that the India scheme has no correlation whatsoever with the UPSC exams. It is important to note that the UPSC exams have played a vital role in contributing to the economic growth of the country.

What is GSP India GST?

Rest assured that India’s GST scheme is not different from that of other countries. It only applies to goods and services based in India. The GSP schemes are specifically designed to support Indian goods in being imported into other countries. There is no need for concern about the compatibility of the GST scheme with other countries.

Disclaimer: Above the above published information is only for reference purpose. For any changes in the content, we refer to visit the concerned official website, and we are not responsible for anything.

Leave a Comment