New Delhi, Jan. 23 -- Starting 1 January, the European Union (EU) has halted export incentives for industries including plastics and textiles under a preferential programme involving India and two other nations. While India's commerce ministry suggests this transition won't dampen the country's exports to the 27-member union, the EU has actually been incrementally withdrawing Generalised Scheme of Preferences (GSP) tariff advantages for Indian goods such as textiles, chemicals, and minerals since 2016.

"The same list was extended as per regulations released on December 1, 2025. From January 1, 2026, GSP preferential duties will be suspended for the same list of products until December 31, 2028," the ministry said in a statement.

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