India is urging the US to permit its domestic companies to participate in American government procurement, aiming to boost exports, as per a senior official on January 13.
To facilitate participation, India has requested the US to designate it as a TAA (Trade Agreement Act) compliant country. This matter was discussed during the 14th TPF meeting on Friday, co-chaired by US Trade Representative Katherine Tai and Commerce and Industry Minister Piyush Goyal. Key outcomes for India in the TPF meet include progress on the proposed resumption of export benefits for specific Indian goods under the USA’s GSP (Generalized System of Preferences) program, initiation of formal discussions on designating India as a TAA-compliant nation, and treaty status for visas.
The official explained that being part of the TAA makes a country eligible to participate in the US government procurement system. India aims to enter this significant public procurement system to enhance its exports. However, the official noted that reciprocity is essential, and India will also need to provide access to US firms. Similar negotiations are ongoing with the UK.
If India attains TAA-compliant status, it would facilitate the movement of goods in US public procurement, contributing to the ease of exports. India is committed to protecting its MSMEs and sectors under the PLI (Production-Linked Incentive) scheme from these procurement systems.
Regarding the GSP resumption, another government official expressed optimism about the positive response from the US side. However, the final decision lies with the US Congress, which will determine the terms and conditions for reinstating the GSP. New Delhi is eager to restore its beneficiary status under the US GSP program, which was revoked by the previous Trump administration in 2019. The GSP allows eligible developing countries to export duty-free goods to the US.