US move to end trade preferences ‘unfortunate’: India

India has described as "unfortunate" a decision by U.S. President Donald Trump to end India's designation as a beneficiary nation under a key preferential trade program.

"India as part of our bilateral trade discussions, had offered resolution on significant U.S. requests in an effort to find a mutually acceptable way forward. It is unfortunate that this did not find acceptance by the U.S.," a statement by the Indian government said on Saturday.

"India, like the U.S. and other nations shall always uphold its national interest in these matters," the Indian government said.

Starting from June 5, Washington will withdraw India's Generalized System of Preference (GSP) benefits. The GSP, which aims to promote economic development, is the oldest trade preference program of the U.S.

"I have determined that India has not assured the U.S. that it will provide equitable and reasonable access to its markets. Accordingly, it is appropriate to terminate India's designation as a beneficiary developing country effective June 5, 2019," new agency Press Trust of India reported statement issued by Trump on Friday.

According to the Press Trust of India, New Delhi was the largest beneficiary of the GSP in 2017 with $5.7 billion in imports to the U.S given duty-free status.

The U.S.'s move is the first major challenge for the new government led by Prime Minister Narendra Modi, which returned to power for the second time.