EU’s new GSP suspension to impact just 2.7% of Indian exports, commerce ministry says
India’s commerce ministry has clarified that the European Union’s proposed suspension of certain benefits under the Generalised System of Preferences (GSP) will impact only a small fraction of India’s exports. According to official estimates, the move will affect around 2.7% of total Indian exports to the EU, limiting its overall economic impact. The ministry noted that India’s trade relationship with the EU remains strong and diversified, with many export categories already operating outside the GSP framework. Officials also highlighted that Indian exporters have become increasingly competitive and resilient, reducing dependence on preferential trade schemes. The government is closely reviewing the EU’s decision and remains engaged in dialogue to protect India’s trade interests. With ongoing discussions around a free trade agreement between India and the EU, authorities believe long-term export growth will remain steady despite short-term policy changes.
The Key points
- EU plans partial suspension of GSP trade benefits for India
- Only 2.7% of Indian exports expected to be impacted
- Commerce ministry downplays major economic disruption
- Most Indian exports already outside GSP coverage
- Exporters have reduced reliance on preferential tariffs
- India-EU trade relationship remains stable and diversified
- Government monitoring sector-specific impacts closely
- Talks ongoing to safeguard India’s export interests
- Free Trade Agreement discussions with EU still active
- Long-term export growth outlook remains positive
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