American president Donald Trump announces to end Generalized System of Preferences with India. This system has been made for Developing and Under-Developed Countries to boost its export to Developed Countries. India takes huge advantage to export its commodities to United States. Almost $5.6 billion export is done every year by India to United States. GSP is working for India since 1976.
It comes in effect because India is top most country to increase GDP. India has levied various tariffs on Imported Commodities. That is why, many developed nations like United States and Great Britain think, India does not need such advantages. India has capped Knee Transplant and Stents for Heart. These are brought by United States. United States wants to increase the rate such essential medical treatment. American Companies are unable to garner money from medical devices. As American President has more problems with Indian Tariff System. He raised a concern with Prime Minister Narendra Modi for Harley Davidson’s Super Bike.
At this time, India set to go for Lok Sabha Election. There is no hope in near future to earn more money from Indian market. All necessary items would be cheap. United States thinks that it is good to end Generalized System of Preferences. Indian Government has denied any effect on export of country.