Withdrawal of GSP (generalised system of preferences) by the US administration will have a short-term effect on bilateral trade, but the disadvantages will even out in the long term, said KV Kumar, Chairman and CEO, Indian American International Chamber of Commerce (IAICC).

“In the long term, business will take care of itself. There may be short-term impacts of GSP withdrawal,” he told the media here on Monday.

Trade volume

Bilateral trade in goods and services has registered a 12.6 per cent rise to $142 billion in 2018, compared with $126 billion in 2017.

The target is to take it to $500 billion by 2023-24.

The IAICC works with entrepreneurs, professionals, businesses and governments to develop entrepreneurship and commerce through mentor-protégé programmes, seminars, etc.

According to Kumar, one of the major disadvantages that India faces in the US is the absence of “lobbying” and “proper marketing of its goods and companies.” In fact, other countries have been much better at lobbying and marketing themselves because of which their voices are heard more often, he added.

“India is not doing enough when it comes to lobbying in the US. Some countries are known to spend millions of dollars on marketing themselves,” he said. Speaking on the rising trade tensions between the US and China, Kumar said “China is now a strong country” and it was a matter of debate whether trade concessions should continue or not.

MoU with Bengal Chamber

Meanwhile, the Bengal Chamber has signed an MoU with IAICC with a view to offering greater trade advisory services to small businesses of India and the US.

The Chamber could collaborate in facilitating B2B connects between American businesses and its Indian counterparts from East and North-East.

According to Kumar, a plan is afoot to build a B2B platform, which will help small businesses tap the global market.