USA terminated India’s designation as a beneficiary developing nation under the GSP (Generalized System of Preference) trade program w.e.f. 5 June 2019.

• The step was taken on determining that India has not committed to provide “equitable and reasonable access to its markets” for the US.
• The Generalized System of Preferences are unilateral, non-reciprocal and non-discriminatory benefits extended by some developed nations to developing countries.
• GSP was instituted on 1 January 1976, by Trade Act of 1974.
• The U.S. designed trade program seeks to promote economic growth in developing countries by providing preferential duty-free entry for up to 4,800 products from 129 designated beneficiary countries and territories.