in terms of trade valuation india exports about rs 1000 crore of tyres to the us annually new delhi earlier this month united states administrations decision to strip india off preferential trade status leveling the country as a veryhigh tariff nation sent the indian inc into tizzy the good news is that indian auto component industry foresees no major impact however this may inflict the local tyre makers preferential trade status given under generalised system of preferences gsp duty programme is a tariff system which developing countries get from the developed nations in order to promote their export advt reacting to the us decision the indian auto component makers body automotive component manufacturers association acma said that there will be a small portion of the export basket to the us that will get impactedthe total auto components exports to us stood at 31 billion annually with a gsp tariff advantage of only 200 million which is close to 67 per cent vinnie mehta director general acma told to etauto they have only removed a preferential status but majority of the components are anyway at zero duty in the usthe auto component body said indian manufacturers were receiving a preferential status only on 31 product out of a total of 218 products exported to the us within this even if gsp comes into play 20 productsparts will attract 23 per cent custom duty 4 products will be in 34 percent duty and only seven items will attract the highest 56 per cent duty mehta informedsince these are less than 10 percent of our exports that are being impacted so the consequence is not very significant and it would be business as usual he addedhowever another sector within the auto industry where the exports to us grab a substantial share of over 10 per cent is the indian tyre industry in terms of trade valuation india exports about rs 1000 crore of tyres to the us annuallyus decision to withdraw duty benefits on indian products under the gsp will pose a challenge for the tyre industry in india at least in the short term said rajiv budhraja director general automotive tyre manufacturers association atma advt he further added that the changeover process to new exports destinations will get impacted in the short term it will take time for the domestic companies to adjust to the profile of the new marketindia mostly supplies trucks and bus tb tyres to the us which is the single largest category of tyre exports during the current fiscal total tyre exports from india are likely to touch us 2 billion to offset the impact the indian tyre makers will explore new opportunities in the newer region said budhraja by shruti mishra etauto published on mar 11 2019 at 0902 pm ist telegram facebook copy link be the first one to comment comment now comments comment now read comment 1 all comments post post find this comment offensive choose your reason below and click on the