A study conducted by the Associated Chambers of Commerce and Industry of India (Assocham) has brought to light the “serious threat” posed by heavy imports of cycle parts from China to India owing to the free trade agreements (FTAs) under the South Asia Free Trade Agreement (Safta).
“There is a need to increase the import duty on bicycles and its parts from prevailing 20% to 30% to equate the prices of bi-cycles made both in India and China in the global market,” noted a recently concluded study on 'Future of Indian Bicycle Industry' by Assocham.
“There is an urgent need to impose strict anti-dumping laws to check rising cheap imports of bi-cycles and components from China, which has been dumping its products in India,” said DS Rawat, Assocham secretary general while releasing the report.
He said the imports of bi-cycles and their components from China went up by nearly 41% during the five years, as such it was imperative for India to review the FTAs and Safta to safeguard the interests of the domestic bicycle industry,” said Rawat.
India's exports of bi-cycle to other countries have grown at a compounded annual growth rate (CAGR) of nearly 17%, while the imports grew at over double the rate nearly 35% mainly on account of uncompetitive pricing, noted the study.
{{/usCountry}}India's exports of bi-cycle to other countries have grown at a compounded annual growth rate (CAGR) of nearly 17%, while the imports grew at over double the rate nearly 35% mainly on account of uncompetitive pricing, noted the study.
{{/usCountry}}India is world's second largest bi-cycle producer after China - accounting for nearly 10% of the global bi-cycle production - and with an estimated market size worth $1.5 billion Indian bi-cycle industry produces nearly 15 million finished bicycles annually.
Assocham has batted for reduction in the excise duty imposed on bi-cycles to support the industry and reduce the excess burden.