India's near-term trade
outlook is fragile as its retaliatory tariffs on US products come amid a
global slowdown, a report said.
Trade deficit remained elevated
in May and widened to $15.36 billion from $15.33 billion in April and a
comparable $14.62 billion the same month last year.
term outlook for trade looks fragile with President Donald Trump
terminating a beneficial trade treatment accorded to India for a
developing nation. Also, the recent imposition of retaliatory tariffs by
Indian economy to US decision comes at a time when global economic
growth rate is projected to slow down.. ," the Centrum report said.
the actions add further woes to India's trade position, that is already
struggling against the prevalent headwinds from slowing global demand,"
However, Crisil said it believes the withdrawal of
benefits under the Generalized System of Preferences (GSP) from June 5,
as announced by the US earlier, will have limited impact on India's
overall export trade.
"In calendar 2018, India's goods and
services trade with the US totalled $142.1 billion of which, exports
were $83.2 billion. Within exports, that under GSP is estimated to be
7.5-7.8 per cent, which translates into $260 million of levies saved,
tantamount to a 4 per cent duty benefit," Crisil said.
that the gems and jewellery sector could be moderately impacted by the
withdrawal of GSP, pharmaceuticals and textiles and apparel would be