US withdrawal of GSP will not significantly impact India: Goyal

India on Friday reiterated that United States withdrawal of preferential trade treatment for India will not have a significant impact on India. "The total impact of GSP (Generalised System of Preferences) is under USD 250-260 million in a year and for a country of the size and strength of India, I can assure that it will not have any significant impact and India can handle the situation well," Union Commerce Minister Piyush Goyal told Rajya Sabha.

Raising his concerns over the issue during Question Hour, CPI leader D Raja sought to know from the government the impact of the termination of the preferential trade by the US with India. Goyal said Indian Industry is competitive in its export products and the government does not foresee a significant impact on the country's foreign trade.

"The country is well competent to handle the international trade situation," he said. Goyal said this was a unilateral non-obligatory concession that the US was giving to India as a developing nation.

"Some of the demands that were raised on India were such that India could not yield on those demands. I think national interest is paramount for us," he said. The US has ended the privileges that India was enjoying under the GSP since June 5.

The GSP, implemented since 1974, is the largest and oldest US trade preference scheme and it allows duty-free imports for thousands of products from designated beneficiary countries.