Tariff free trade route has come as a curse for Ludhiana bicycle MSMEs: Industry

Ludhiana, July 29 (KNN) The world renowned bicycle industry of Ludhiana which produces crores of bicycles with the support of Micro Small and Medium Enterprises (MSMEs) is at the verge of closure as it is facing tough competition from China.

According to media reports, China has gatecrashed the Indian market through the South Asian Free Trade Area (SAFTA) pact, which came into effect in 2006. The agreement paved the way for the eight member countries to reduce customs duties of all goods traded among them to zero by 2016. China isn't a party to the pact but is still reaping its benefits.

Speaking with KNN India, President of Federation of Punjab Small Industries Associations (FOPSIA), Badish Jindal said “Tariff-free trade route has come as a curse for bicycle industry of Ludhiana.”

He said that Chinese are taking benefits of international treaties like South Asian Free Trade Area (SAFTA) and ASEAN.

President of United Cycle and Parts Manufacturers Association (UCPMA), Gurmeet Singh Kular said “India is dependent on China for some bicycle parts which are not available in India but parts which are domestically produced should not be dumped in India from China as it affects the business of domestic manufacturers.”

Government should impose higher custom duty of 60%-70% on such imports to protect the interest of domestic manufacturers, he added.