Commerce, India Dr. Ravi Singh research head, Karvy said that the benefits we were getting in exporting our products in the US Market will not be further continued. They said after this step of Donald Trump, inflation will rise due to increasing the tax on the products we export to the USA. Due to this uncertainty, the prices of Gold, Commodity, Petrol, Deisel, and our daily consumable products will increase.
Already, the world’s economy is slowing down due to a US-China trade war. India is also not safe anymore in this trade war. Also, India has to bear a loss of concession of GSP. Now, India will not be able to sell its product anymore in the US with these benefits. It has to bear lots of tax now, hence, inflation will rise in India.
According to a Report, with the benefits of GSP India has exported the products of worth rupees 40 thousand crores in the USA, in 2017. Until India was listed in the GSP, it has an opportunity to get the profits of US-China trade war but not more.
According to a report, the increase of 97% GSP importing is due to US-China trade war. With GSP, the import of imported products has increased by 18% whereas imports of unimported products are increased by only 2% in 2017.
Due to the trade war, the unimported products of China has been recorded only 90% in GSP import, in 2019.
Experts said that the demand for Gold increasing in the market due to India exits from GSP. In the next 2-3 months, the price of golds might increase. After the conclusion of this concession, the fear of rising inflation has increased. It will have a negative impact on the Indian economy. The price of gold and raw material can be increased.
After the conclusion of this concession, the rate of Agri commodity or non-Agri commodity has been decreased. And, India will directly be impacted by the conclusion of the concession of GSP because it has received more benefits from the GSP. Because with GSP we get benefits in tariff by importing the products in any country. We can sell our products without any tax in any country.
If India retains its GSP only then the price of Gold and raw material can decrease. America has taken this step in a hurry, therefore, it is assuming that India might retain its GSP concession soon. Because the US has to fulfill it’s market needs as well.