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 has been 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 can be 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 is well known as GSP is an idea that was 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 But due to selected reasons, they have withdrawn their GSP from India whose worth is said to be $70. 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 have unified to continue under GSP to India and they are listed below.
|SI.No||Name of the Country|
|16||United States of America|
|19||Republic of Belarus|
|22||Republic of Bulgaria|
|31||European Union (EU*)|
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 GSP. Out of these 35 have provided their GSP 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 GSP scheme was removed for India as the required improvements were not made. Thus, they terminated the GSP scheme to India in June, 2019.
- What is meant by GSP?
GSP stands for Generalized system of preference in which developed countries provide developing countries with reduced tariff rates on their imports.
- GSP products list in India?
India has been effective in providing to more than 35 countries under the GSP scheme and the most important industrial goods are agriculture and handloom.
- What is GSP India USPC?
It is to be understood that the GSP 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 GSP 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 are to help Indian goods to be imported to other countries.