- Indian government has extended its deadline to impose retaliatory import duties on 29 US products till May 16,2019.
- These deadlines were extended several times since June 2018 when India decided to impose these duties in retaliation to a move by the US to impose high customs duties on certain steel and aluminium products.
- Further,this extension comes in the backdrop of the US decision to withdraw export incentives being provided to Indian exporters under Generalised System of Preferences(GSP) programme.
- However,India may go ahead with its decision to impose retaliatory tariffs if the US would withdraw the GSP benefits.GSP is a preferential tariff system extended by developed countries to developing countries which allows zero tariff imports from developing countries.
- India’s exports to the US in 2017-18 stood at $47.9 billion while imports were at $26.7 billion.The trade balance is in favour of India.
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