India may approach WTO if US denies GSP benefits

Preferential treatment cannot be unilaterally terminated

by Nidhi Bhati

India can approach the dispute settlement body of the World Trade Organisation (WTO) if the US denies it generalised system of preferences (GSP) benefits, as per a report in Economic Times. The US has announced to review India’s GSP eligibility based on petitions filed by its dairy and medical devices industry stating that Indian trade barriers affect US exports in those sectors [see here]. According to industry sources, the GSP is a non-reciprocal programme. Explaining further they said that when developed countries grant trade concessions to developing countries, they should not expect matching offers in return. Hence, the benefits can’t be unilaterally terminated on such basis. As per US norms, a beneficiary country must meet 15 eligibility criteria established by the Congress in order to qualify for GSP. However, India can challenge the US even if these conditions are not met and benefits are stopped, opine industry sources.

References
1. https://economictimes.indiatimes.com/news/economy/foreign-trade/india-may-move-wto-if-us-denies-preferential-treatment-to-exports/articleshow/63775593.cms
CMIE STATISTICS
Unemployment Rate
Per cent
6.3 +0.1
Consumer Sentiments Index
Base September-December 2015
93.5 +0.8
Consumer Expectations Index
Base September-December 2015
93.9 +0.6
Current Economic Conditions Index
Base September-December 2015
92.8 +1.0
Quarterly CapeEx Aggregates
(Rs.trillion) Jun 17 Sep 17 Dec 17 Mar 18
New projects 2.32 1.37 1.18 2.15
Completed projects 0.87 1.21 1.02 1.06
Stalled projects 2.67 0.69 0.93 3.34
Revived projects 0.30 0.34 0.23 0.14
Implementation stalled projects 0.73 0.72 0.58 1.05
Updated on: 23 Apr 2018 12:20PM
Quarterly Financials of Listed Companies
(% change) Jun 17 Sep 17 Dec 17 Mar 18
All listed Companies
 Income 9.6 7.9 11.9 12.3
 Expenses 9.9 9.0 12.9 11.5
 Net profit -19.9 -18.1 -13.9 14.1
 PAT margin (%) 5.3 5.5 4.9 19.5
 Count of Cos. 4,481 4,468 4,430 48
Non-financial Companies
 Income 10.2 8.2 13.2 8.5
 Expenses 10.5 8.2 12.3 7.7
 Net profit -25.1 -6.0 12.7 9.7
 PAT margin (%) 5.2 6.2 6.4 19.8
 Net fixed assets 9.2 0.7
 Current assets 78.7 7.3
 Current liabilities 11.0 21.6
 Borrowings 10.4 -5.3
 Reserves & surplus 5.2 -2.1
 Count of Cos. 3,458 3,441 3,426 34
Numbers are net of P&E
Updated on: 23 Apr 2018 12:20PM
Annual Financials of All Companies
(% change) FY15 FY16 FY17 FY18
All Companies
 Income 5.5 1.5 5.1 1.6
 Expenses 5.6 1.7 5.1 0.7
 Net profit 0.0 -10.3 23.7 9.2
 PAT margin (%) 3.1 2.8 3.6 8.3
 Assets 9.5 10.0 6.9 3.3
 Net worth 8.5 11.4 6.0 2.8
 RONW (%) 5.8 4.9 5.9 12.7
 Count of Cos. 25,647 23,668 20,755 19
Non-financial Companies
 Income 4.7 0.6 4.7 1.5
 Expenses 4.9 0.0 5.2 0.6
 Net profit -8.6 18.4 18.0 10.7
 PAT margin (%) 2.0 2.5 3.1 7.4
 Net fixed assets 13.3 17.3 5.4 4.4
 Net worth 6.9 12.0 4.4 2.9
 RONW (%) 4.6 5.1 6.0 11.5
 Debt / Equity (times) 1.1 1.1 1.0 0.2
 Interest cover (times) 1.9 1.9 2.1 11.8
 Net working capital cycle (days) 66 65 62 38
 Count of Cos. 20,897 19,807 17,287 17
Numbers are net of P&E
Updated on: 18 Apr 2018 11:50AM

Time series available from 1990 onwards