The US government forces out India from the preferential trade pact between the two nations says an official. This is even when Washington wants to continue its close ties with the re-elected Prime Minister Narendra Modi.

The GSP or Generalized System of Preferences that offers preference or favourable access to goods from developing country provided India the room to export goods worth $5.6 billion to the US in the year 2017. And in March, the US said to be removing India on account of trade barriers.

Also, in its wake India protested saying that it could not come up with counter-proposals as there are restrictions to policy making during the election season.

"I think that suspension was a done deal. Now the task is how do we look ahead, how do we work under the second Modi administration to identify a path forward," the official said on condition of anonymity. Though, the official hopes of a warm relation with Modi government who has attained a re-sounding victory with major mandate, but he also on the sidelines confirmed that March decision will be taken forward.

GoodReturns.in