Yesterday, Indian Prime Minister Narendi Modi met with President Donald Trump at the White House. Following those meetings, the two leaders committed to “intensify their economic cooperation to make their nations stronger and their citizens more prosperous,” including a specific commitment to “removing obstacles to growth and jobs creation.”
Speaking at the U.S.-India Business Council today, Vice President Mike Pence said:
The trade relationship between the United States and India is flourishing. It’s remarkable to think that not even 20 years ago, two-way trade between our nations was less than $20 billion per year. But by the end of last year, it had grown by more than 500 percent to an annual $115 billion in trade; and U.S. exports to India now support roughly 200,000 American jobs.
But it is not just U.S. exports to India that support jobs. Duty-free imports from India under the GSP program support American companies, workers, and even exports. As shown in the infographic below:
- GSP benefits for India saved American companies $332 million from August 2015 to April 2017 alone – more than any other country;
- India was the most important source country for a majority of U.S. states in terms of GSP tax savings;
- Nearly half (!) of companies importing under GSP from India export some of those GSP-eligible goods – or products made from them – around the world,
- American companies benefiting from GSP for India are incredibly diverse, though the vast majority are small businesses.
Vice President Pence noted that “the truth is the United States and India we believe have only scratched the surface when it comes to bilateral investment and trade.” We agree, but it would be a mistake to overlook current win-win policies such as the GSP program.
