INDIA URGES GSP RESTORATION, ADDRESSES VISA ISSUES WITH U.S.

India has once again sought restoration of its beneficiary status under the US Generalized System of Preferences programme, emphasized the need to increase the number of inspections by the US Food and Drug Administration (U.S. FDA) in India to facilitate trade and continue to reduce the backlog and conveyed interest in being recognized as a Trade Agreements Act designated country by the United States during the 14th Ministerial-level meeting of the India-United States Trade Policy Forum (TPF) held on 12 January, cochaired by Minister of Commerce and Industry Piyush Goyal and US Trade Representative Katherine Tai.

However, there is no breakthrough in sight on the restoration of India's beneficiary status under the US GSP programme with the USTR indicating this could be considered, as warranted, in relation to the eligibility criteria determined by the US Congress. The Trump administration in the US, in 2019, revoked the GSP from India which 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. India's interest in more inspections by the US FDA is in line with their mutual desire to further public health discussions to ensure safe and effective medical products. The US has appreciated India's remarks, noting that the US FDA has increased staffing to increase pharmaceutical inspections conducted by the agency.

The 14th Round of the TPF comes amidst a strong momentum in India-US bilateral trade in goods and services, which continued to rise and likely surpassed USD 200 billion in calendar year 2023 despite a challenging global trade environment.

However, considering the size of the two economies, significant potential remains unrealized and both Goyal and Tai are keen to enhance engagement with the goal of continuing to increase and diversify bilateral trade.