New Delhi: India and the US have agreed to discuss New Delhi's demand for restoration of GSP benefits to domestic exporters and now both sides will commence discussions to find a solution, Commerce and Industry Minister Piyush Goyal said on Friday. The previous Trump administration in the US revoked the Generalised System of Preferences (GSP) from India in 2019. The GSP allows eligible developing countries to export duty-free goods to the US.
About 1,900 Indian products from sectors such as chemicals and engineering were getting duty-free access to the US market under the GSP, introduced in 1976. The joint statement issued after the meeting of Prime Minister Narendra Modi and US President Joe Biden in Washington said that India has highlighted its interest in the restoration of its status under the US Generalised System of Preferences programme, which could be considered in relation to eligibility criteria determined by the US Congress.
The leaders supported intensifying the work to advance progress on issues related to the eligibility criteria, he said. Goyal said that now it is a matter for both countries to pursue and engage in a dialogue. Ultimately, it's the US Congress which has to take a final decision "but discussions will now commence on that issue," he said.
The US has assured that they will consider that and "we will discuss that and find some solution," he added. When asked about cooperation in the semiconductor sector between India and the US, the minister said that companies start with R&D, innovation, testing, and packaging and then gradually decide on providing the end-to-end facility. India will be a USD 100 billion semi-conductor market by 2030.
When asked if US electric car maker Tesla has sought incentives after its chief Elon Musk met the prime minister in New York on June 21, he said "no such requests" have been received. Tesla Inc, the world's largest electric car producer, is looking to make a significant investment in India, said Musk, who saw India as holding more promise than any other large country around the globe.
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