EU Duty Suspension: Minimal Impact on India's Exports

The European Union's suspension of duty benefits under the Generalised System of Preferences will impact a minimal 2.66% of India's exports to the EU. The commerce ministry highlighted that agricultural lines will continue to receive benefits, with the suspension affecting mainly non-agricultural sectors like mineral products and textiles.

The European Union's decision to suspend duty benefits under its Generalised System of Preferences (GSP) scheme will affect only 2.66% of India's exports to the EU, according to the commerce ministry.

The GSP, a unilateral trade preference mechanism, allows the EU to offer reduced or zero customs duties for imports from developing nations. India, being part of this scheme, has now seen its specific tariff preferences for 13 GSP sections, including chemicals and iron, suspended from 2026 to 2028 due to increased export competitiveness.

The ministry confirmed that agricultural products remain unaffected, continuing to enjoy duty-free status. In contrast, the non-agricultural sector faces changes with only leather being reinstated, impacting sectors like textiles and minerals.

(With inputs from agencies.)