The US decision to revoke duty-free concessions on import of at least 50 Indian products is not a bolt out of the blue, said Ajay Dua, former secretary, department of industrial policy and promotion (DIPP).
The apprehension that it is because India levied duties on 29 imports from the US in reply to their decision to hike import duties on aluminium and steel, he said. "So, mentally I think that something was going to come was known to the Indian government and it is not altogether a bolt from the blue, Dua said.
The US on Thursday revoked duty-free concessions on import of at least 50 Indian products, mostly from handloom and agriculture sectors, reflecting the Trump administration's tough stand on trade-related issues with New Delhi.
The federal register issued a notification, listing out 90 products which were so far subject to duty-free provisions under the Generalised System of Preferences (GSP).
A count of the products indicated that at least 50 of them are from India. Notably, India is the largest beneficiary of the GSP. In 2017, India's duty-free export to the US under the GSP was to the tune of more than $5.6 billion.