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 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 But due to selected reasons, they have withdrawn their GSP from India whose worth is said to be $70.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
1	Australia
2	*EU
3	Czech Republic
4	Japan
5	Belgium
6	Estonia
7	NewZealand
8	Denmark
9	Cyprus
10	Norway
11	Finland
12	Latvia
13	Switzerland
14	France
15	Lithuania
16	United States of America
17	Germany
18	Hungary
19	Republic of Belarus
20	Greece
21	Malta
22	Republic of Bulgaria
23	Ireland
24	Poland
25	Russian Federation
26	Italy
27	Slovenia
28	Turkey
29	Luxembourg
30	Slovakia
31	European Union (EU*)
32	Netherlands
33	Spain
34	Portugal
35	Sweden
36	United 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 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.