Cycle industry delegation meets Union MoS

Tribune News Service

Ludhiana, October 18

A delegation of prominent industrial associations, under the banner of FICO-I am SME of India and leadership of Gurmeet Singh Kular, president of FICO, along with Manjinder Singh Sachdeva, president Brado, DS Chawla, president, UCPMA, today met the Union Minister of State (MoS) for Commerce and Industry, Som Parkash.

They submitted a representation on the impact of RCEP (Regional Comprehensive Economic Partnership) agreement on the bicycle industry.

The bicycle industry is already facing a grave situation due to import through Safta countries under value import from China by ‘unfair’ means, apart from the heat from global recession.

Kular expressed his apprehension about Chinese bicycles and parts directly entering into the Indian domestic market (which are enjoying 15-20 per cent export benefits from the Chinese government).

“Though there is an import duty at the rate of 30 per cent on complete bicycles and 20 per cent on bicycle parts, even then we are finding it hard to compete with the Chinese products. We apprehend if the RCEP agreement is accepted for the cycle and parts industry of India, the existing bicycle industry will not be able to compete and may have to find their existence in alternative business,” he added.

Kular said Chinese bicycles and parts were cheaper by 15- 20 per cent and already posed a challenge to the Indian bicycle industry.

He said if European and American governments could impose heavy duties at the rate of 67 per cent on China made bicycle and parts then the Prime Minister can also safeguard the Indian industry by imposing heavy duties and not including RCEP on bicycle and its parts.

Manjinder Singh Sachdeva, president Brado and general secretary, FICO and UCPMA, cautioned the Union Government, giving the statistics about the negative impact directly or indirectly on the exchequer due to the RCEP.

He gave interesting figures of employment in the bicycle industry that comes to direct/indirect 5 lakh workers.

DS Chawla, president, UCPMA, presented the production of bicycle figures of India & China.

In 2001, India was manufacturing nearly 1.31 crore bicycles as compared to 5.5 crore manufactured by China. Now, after nearly 19 years, India has reached nearly 1.75 crore compared to nearly 17 crore bicycles produced by China.

Union Minister Som Parkash assured the delegation that they would not allow China to enter India at the cost of ‘Make in India’.