No Big Impact

India is no longer a beneficiary of the United States' oldest trade preference scheme - Generalised System of Preferences (GSP). The programme was benefiting India tremendously. Exports worth $5.6 billion, or 13 per cent of its total US exports of $46 billion in 2017, were on zero or near zero concessional tariff. However, any adverse impact of the move is unlikely to be very bad.

Of the 4,582 products or tariff lines that have been impacted, tariff increase will be in double digits only in case of 145 items. The tariff rise in majority of the products will be below 5 per cent. The damage is more in the action itself than in monetary terms as it signals tougher bilateral trade negotiations between India and the US in the coming days. India needs to gear up for that to ensure that the country doesn't cede any space to American interests in other sectors, primarily e-commerce, medical devices and IT services.