Clarification on EU GSP Notification and Its Impact on Indian Exports
The Federation of Indian Export Organisations (FIEO) wishes to clarify recent reports regarding the European Union’s notification extending the withdrawal of GSP benefits on certain product categories from India.
City Air News
Jan 23, 2026 07:50
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New Delhi; January 23, 2026: The Federation of Indian Export Organisations (FIEO) wishes to clarify recent reports regarding the European Union’s notification extending the withdrawal of GSP benefits on certain product categories from India.
While it has been reported that approximately 87% of India’s export value to the EU falls under the broad product categories mentioned in the EU notification, it is important to note that this does not imply that 87% of Indian exports will face higher duties.
Firstly, the EU notification refers to broad product groupings, within which: (i) Several products already attract zero customs duty under the EU’s MFN (Most Favoured Nation) regime, and therefore remain unaffected by the withdrawal of GSP preferences; and (ii) Many specific tariff lines within these broad categories continue to be eligible for EU GSP benefits, subject to applicable rules of origin and conditions.
Secondly, it is important to underline that the withdrawal of GSP benefits is not a new measure. The current notification merely extends the validity of the earlier suspension of preferences, which has been in place for these product groups for the past few years. No additional products have been newly brought under GSP withdrawal through this extension.
Accordingly, the practical impact of the notification on Indian exports is limited, and exporters are advised to assess their position at the tariff-line (HS code) level, rather than at the level of broad product categories.
