GSP extension to have limited tariff impact on India exports: FIEO

Federation of Indian Export Organisations (FIEO) has clarified that recent reports overstating the impact of the European Union’s extension of Generalised Scheme of Preferences (GSP) withdrawal on Indian exports are misleading. While around 87 per cent of India’s export value to the European Union falls under broad product categories cited in the EU notification, this does not mean the same share will face higher duties.

FIEO said the EU’s extension of GSP withdrawal does not mean 87 per cent of Indian exports will face higher tariffs.
Many products already attract zero MFN duty or remain eligible for GSP at tariff-line level.
The move only extends an existing suspension until December 31, 2028.
Affected sectors include textiles and garments, chemicals and machinery.

FIEO noted that many products within these categories already attract zero customs duty under the EU’s MFN (Most Favoured Nation) regime, while several tariff lines continue to enjoy GSP benefits subject to rules of origin. It also stressed that the latest notification merely extends an existing suspension and does not add new products.

According to the Official Journal, the European Commission confirmed on September 25, 2025 that the suspension for India, Indonesia and Kenya will apply from January 01, 2026 to December 31, 2028. Affected sectors include textiles and garments, chemicals, machinery and transport equipment.

Fibre2Fashion News Desk (HU)