A Dialogue, an Opportunity (Live Mint)
Mains Paper 3: Economy
Prelims level: GSP
Mains level: Indian Economy and issues relating to planning, mobilization of
development and employment.
- Trade issues are not a formal part of this week’s dialogue in Delhi
between the visiting US Commerce Secretary Wilbur Ross and Union Commerce
Minister Suresh Prabhu.
- But there is no doubt that mounting trade tensions between India
and the US have cast a dark shadow over the talks.
Withdrawing trade benefits impact
- The immediate danger is that the US might withdraw India’s trade
benefits under the so-called Generalised System of Preferences that Delhi
has enjoyed since the mid-1970s.
- Market access, reciprocity in tariffs, trade deficit, predictable
investment rules and data localisation.
- The first is to recognise the value of the trade relationship
between the two countries and its huge potential.
- “Flat as a chapati” annual two-way trade has grown rapidly to
touch nearly $130 billion last year (including trade and services).
- For India, the US is probably the most important trade partner
today and will remain so for a long time.
- For Washington, the size of the trade volume with India is quite
low in comparison with its other key partners like Canada, Mexico, the
European Union, Japan and China.
- But the potential remains high as India emerges as the world’s
- Both countries need to be sensitive to the domestic political
- Trump has convinced himself that the rest of the world has taken
advantage of America’s open market.
- In India, successive Prime Ministers Atal Bihari Vajpayee,
Manmohan Singh and Narendra Modi chose to defy conventional political and
bureaucratic wisdom to advance the country’s relationship with the US.
- Indian officials who negotiated the complex nuclear deal can
recall how George W Bush repeatedly overruled objections of his cabinet
- Never stop negotiating and keep making deals small or big.
Q.1) Which of the following is/are rain water harvesting systems found in
different parts of India?
Select the correct answer using the code(s) given below:
(a) 1 only
(b) 1 and 2
(c) 2 and 3
(d) 1, 2 and 3
Q.1) What is GSP? Critically evaluate the impact on India after
withdrawing trade benefits decisions taken by U.S..