After President Donald Trump terminated India’s designation as a beneficiary developing nation under the key Generalized System of Preference (GSP) trade programme, former commerce secretary Rajeev Kher on Friday said that the country should prepare themselves to grapple with future challenges in trade with the US.
In an interview to CNBC-TV18, Kher said, "GSP benefit did help our industry in a significant manner, the quantum was about $5.5 billion. According to the department of commerce, about $190 million of benefit was passed down to the industry. There are some sectors which will be affected in a more adverse manner in the sense that there is a concentration of products and those products if considered necessary will have to be appropriately compensated."
He said, "The biggest challenge and the opportunity that India has in terms of sorting out India-US economic engagement is to paint a much broader picture before the US leadership. It is not the narrow part of the US-India trade relationship alone, we have to look at a much larger economic and political economic engagement that India has with the US. America runs a deficit with India and that is very understandable. US has adopted a paradigm of production which allows countries like China and India to run surpluses with the US but that is intrinsic in the system."