What is GSP and Full Form with GSP Countries List

Detailed information of GSP and list of countries presented for reference. Check whether India is eligible or not and also check eligibility for GSP followed by some FAQs…

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.

One of the crucial reasons why this put into effect is to provide all the developing and developed countries with options to grow effectively while 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 But due to selected reasons, they withdrawn from India whose worth said to be 5.6 Billion worth or exports.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 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.

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

There are 35 nations who have provided their schemes in India and out of which USA has removed its GSP for 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 to understood that the scheme to India does not in any way correlate to the UPSC exams and their notable contribution to economic growth.

What is GSP India GST?

Many have shown concerns that the scheme of India for other countries would be different to GST but this is not necessary as GST pertains to India-based goods and services taxing. While the GSP schemes help Indian goods to import to other countries.