United States’ President Donald Trump plans to end India’s preferential trade treatment under generalized system of preferences (GSP). Ajay Sahai, director general & CEO of Federation of Indian Export Organisations (FIEO), assessed the impact.

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"GSP is fundamentally on a non-reciprocal basis and US is linking it with a concession on products like diagnostic equipment, IT and IT products. So fundamentally US is wrong on that side," Sahai told CNBC-TV18 on Tuesday.

“Our total exports to the US is around USD 35 billion and out of that around USD 5.6 billion was under GSP, but net gain in terms of tariff to India was just USD 190 billion. So it’s not a big gain to India under GSP regime,” he added.

Talking further about the impact, Sahai said, “We have to care for traditional sectors because they are creating a huge amount of jobs in the country and if the US export is affected, it will impact the job scenario also in the country.”