Generalised System of Preferences (GSP)
India's Key Demand
The Generalised System of Preferences is a US trade programme that allows duty-free imports from designated developing countries on specified products. India was the largest beneficiary of US GSP, with approximately $6.3 billion worth of exports entering the US duty-free annually before GSP was revoked in June 2019. The revocation — announced under Trump's first term on grounds that India had failed to provide "equitable and reasonable access" to its markets — was a major bilateral irritant. Restoring GSP (or a successor arrangement) is India's primary offensive interest in the trade negotiations, as it would directly benefit labour-intensive sectors like textiles, gems and jewellery, leather goods, and chemicals.
- GSP revocation date: June 5, 2019 (effective)
- Value of India's GSP exports before revocation: ~$6.3 billion/year
- Primary beneficiary sectors: Engineering goods, chemicals, textiles, leather, gems and jewellery
- GSP renewal requirement: Congressional action (US Trade Act, 1974 governs GSP); executive cannot restore unilaterally
- Countries with GSP: Over 100 developing nations benefited under the US GSP programme
- Alternative: Section 301 tariff exclusions or MFN tariff reductions can partially substitute
● Tracked since February 22, 2026 · last seen June 24, 2026 · updates as the daily brief publishes