Officials from India desire to take part in US government procurement

Officials from India desire to take part in US government procurement

Officials from India desire to take part in US government procurement

The principal accomplishment for India, according to the official, was making good progress toward the proposed restoration of export benefits for a certain Indian goods under the Generalized System of Preferences (GSP) program of the United States; initiating formal talks on designating India as a TAA-compliant nation; as well as obtaining treaty status for visas.

Enacted in 1976, the Generalized System of Preferences (GSP) allowed over 1,900 Indian items, spanning a variety of industries including chemicals and engineering, duty-free entry into the US market.

On January 13, a top official said that India seeks to increase exports by having its indigenous enterprises engage in US government procurement.

India has requested that the US list it as a TAA (Trade Agreements Act) compliant nation in order for it to take part. On Friday, at the 14th TPF meeting, this topic was discussed. Commerce and Industry Minister Piyush Goyal as well as US Trade Representative Katherine Tai co-chaired the meeting. The principal accomplishment for India, according to the official, was making good progress toward the proposed restoration of export upsides for some Indian goods under the Generalized Tariff System of Preferences (GSP) program of the United States; initiating formal talks on designating India as a TAA-compliant nation; and obtaining treaty status for visas.

"You may take part in the US government procurement system if you are a member of TAA. We've begun having conversations. In the US, public procurement is highly significant. Thus, the official said, "We wish to gain access to that public procurement system." The flow of commodities in their public procurement would be facilitated if India is recognized as a TAA-compliant country. “So, this will increase and facilitate our exports,” the official stated. But in order to do this, India will also need to provide access to American businesses.

It is mutual. India will also need to make concessions to the US. We are also doing it with Britain. The US side has been requested to draft the terms of reference. They'll assess our buying system as well." The officer said. India would shield its MSMEs and industry sectors covered by the Production-Linked Incentive (PLI) program from these procurement methods. Another government source said that the US side has been "very positive" on the return of GSP and that they will need to approach the US Congress.

"What conditions they will approve it under will be decided by the US Congress. Therefore, I believe they are thinking on the matter," the official said. Regaining its beneficiary status under the US GSP program is something New Delhi is eager to see happen. The previous Trump government in the US has revoked GSP from India in 2019. GSP enables duty-free exports of commodities to the United States from qualifying developing nations. Enacted in 1976, the Generalized System of Preferences (GSP) allowed over 1,900 Indian items, spanning a variety of industries including chemicals and engineering, duty-free entry into the US market.