The Indian government on Tuesday downplayed the U.S. decision to remove it from a preferential tariff system to bolster trading prospects of developing countries, saying it will have “minimal” impact, local media reported.

AVA- “The withdrawal of Generalized System of Preferences (GSP) benefits to India will have a minimal and moderate impact," the daily Hindu quoted Anup Wadhawan, commerce secretary, as saying.
The GSP is a trade program for developing countries which allows Indian goods, of around billions of dollars, to enter the the U.S. duty-free.
"The total GSP benefits amount to about $190 million on overall exports (under GSP) of $5.6 billion between the two countries," he added.
Early Tuesday, U.S. decided to withdraw the GSP status for India by the order of President Donald Trump for its failure to assure the U.S. with equitable and reasonable access to its markets in numerous sectors.
"India has implemented a wide array of trade barriers that create serious negative effects on the U.S. commerce. Despite intensive engagement, India has failed to take the necessary steps to meet the GSP criterion," said the U.S. trade representative's office.
On the U.S. decision, the Indian government said: “India was ready to address US concerns regarding medical devices in principle, by putting in place a suitable trade margin approach in a reasonable time frame to balance concerns about fair pricing for the consumers and adequate remuneration for the suppliers.”
“India was agreeable to a very meaningful, mutually acceptable package on the above lines to be agreed to at this time, while keeping remaining issues under discussion in the future,” it added.