FIEO asks for export strategy, GSP reinstatement, and simpler export scheme documentation

As it anticipates benefits for leather, steel, and plastics exports, India’s top exporters’ organization, the Federation of Indian Export Organizations (FIEO), has called for the Generalized System of Preferences (GSP) to be reinstated for duty-free imports of Indian goods into the US. Additionally, it has developed a plan to boost exports to the United States, identifying five industries as priority areas that could help leverage opportunities brought about by US President-elect Donald Trump’s threat to impose high tariffs on Chinese goods: clothing, electronics, toys, footwear, and organic chemicals. Additionally, the organization has pushed the government to give Indian exporters financial support so they can take part in the displays abroad.

Before Trump takes office on January 21, the ministry of commerce and industry has contacted businesses to inquire about their offensive interests in the US. Exporters anticipate that the Trump administration will make it harder to sell services to the US. Nonetheless, he claimed that export credit had declined and that liquidity is a significant issue for exporters. During trade negotiations, the Trump administration ended India’s GSP privileges in 2019, and over –9 billion worth of Indian exports qualified for low- or zero-duty tariffs.

Despite their best efforts, the two parties were unable to finalize a restricted trade agreement. The withdrawal cost the US over $200 million in lost revenue. Along with a five-year extension of the interest equalization program, FIEO has encouraged the government to loosen the requirement that payments be made to MSMEs within 45 days of the purchase of goods and services. Additionally, it is talking with the commerce department about the documentation requirements if an exporter receives more than Rs 1 crore in benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP). Over the RoDTEP program, handling countervailing duty cases on domestic products is crucial.

The action is significant because the US and the EU applied countervailing or anti-subsidy tariffs on certain domestic units. As soon as he enters office, Trump has promised to put fresh tariffs on China, Canada, and Mexico. Additionally, FIEO is advocating for the government to extend the interest equalization program for rupee export credits before and after shipping.