The US has finally agreed to extend trade
benefits to India under the Generalised System of Preferences (GSP) programme
till the formation of a new Government in New Delhi and finalisation of a new
trade package with it, sources have told.
The decision to not withdraw the GSP
benefits from India was informed by the Office of the US Trade Representative
(USTR) over the weekend.
The deadline to withdraw the GSP benefits
was 4 May.
“The GSP review is on hold for now…This is
the result of some adroit diplomacy on our part from the Ministry of External
Affairs, Commerce, PMO and the Indian mission there (in US),” a top Indian
official involved in the talks told.
The official also added that GSP benefits
had been extended “long enough for India to revert after elections and engage
with the US side”.