The US decision to end the generalised system of preferences for gold jewellery and brass lamps from India is bound to hit the India jewellery sector hard and will cause major job cuts in the industry.
Commerce and industry minister Kamal Nath said GSP is a unilateral programme of the US government and is not a result of negotiations with GSP beneficiaries. Hence, it is up to the US government to decide on how it wishes to administer the programme. However, the decision is likely to lead to a number of jobs being lost in the jewellery sector in India, especially among vulnerable groups of society.
The US administration on June 28 decided not to renew the Competitive Needs Limitation waiver for gold jewellery and brass lamps imported from India, thereby ending the GSP preference.
The Federal notice is expected to be notified soon and the changes will be effective within seven days of publication. GSP has been withdrawn from 8 out of 9 products for which the review was carried out under the new regulations.
The only country for which it has been continued is Columbia for mini carnations.