The Generalized System of Preferences (GSP), accorded by the US
to imports from India since 1976, stood terminated as on June 5,
2019. The government of India has indicated that the fiscal impact
of this withdrawal, which would impact approximately $5.6 billion
of India's exports, is not significant. Perhaps it is indeed
not when seen against the overall exports to the US, valued at $230
billion. But the issue is not one of mere numbers, but one of legal
principles as the systemic impact of US's brazen unilateral
actions. It is also of the impact that the move would have on
exporters of several goods such as jewellery, building materials,
solar cells and processed foods, which will face increases of upto
10% in the US tariffs, not all of which exporters can absorb by
increasing prices of products in their struggle to remain
competitive. Spillover effects in terms of downsizing in export
firms, diversification, exploring newer markets, and all the
accompanying
