Centre asks states to procure bicycles from domestic units
Updated: Jul 09, 2014 02:31:24pm
New Delhi, Jul 9 (KNN) The Centre has asked the states to procure bicycles for their different welfare schemes from the domestic manufacturers to protect them from heavy imports from China.
“…the Department of Commerce has also taken up with the State Governments advising them to procure (as per State Government schemes) Indian manufactured bicycles with indigenous parts to protect the cause of the domestic industry,” said Minister of State for Commerce and Industry, Nirmala Sitharaman in Rajya Sabha today.
China is the largest exporter of bicycles and parts thereof to India. However, import data for 2013-14 shows no evidence of increase in imports of bicycles and parts from Sri Lanka and in case of Bangladesh, while there is increase in imports of bicycles in value terms there is no surge in imports of bicycle parts, an official release said.
Based on representations received alleging violation of Rules of origin in imports of such commodities through Sri Lanka and Bangladesh, the CBEC has on 31.1.2014 initiated a verification process on certificate of origin received under SAFTA, SAPTA and ISLFTA for import of cycles and cycle parts.
Bicycles attract basic customs duty (BCD) of 30 per cent while specified parts of bicycles attract BCD of 20 per cent, it said.
India’s biggest cycle manufacturers’ hub, Ludhiana has been facing more than Rs 500 crore loss per year due to massive imports from China, higher tax regimes and crisis of skilled labourers, according to United Cycle and Parts Manufacturers Association (UCPMA).
India is the world’s second largest bicycle manufacturer after China, the size of the Indian bicycle industry worth USD 1.2 billion. The country’s annual production of bicycle stands at 15 million units.
On the other hand, the global bicycles market is worth USD 61 billion. As many as 130 million bicycles are sold every year globally and 66 per cent of them are made in China. China is believed to be producing two out of every three bicycles made globally. (KNN Bureau)
“…the Department of Commerce has also taken up with the State Governments advising them to procure (as per State Government schemes) Indian manufactured bicycles with indigenous parts to protect the cause of the domestic industry,” said Minister of State for Commerce and Industry, Nirmala Sitharaman in Rajya Sabha today.
China is the largest exporter of bicycles and parts thereof to India. However, import data for 2013-14 shows no evidence of increase in imports of bicycles and parts from Sri Lanka and in case of Bangladesh, while there is increase in imports of bicycles in value terms there is no surge in imports of bicycle parts, an official release said.
Based on representations received alleging violation of Rules of origin in imports of such commodities through Sri Lanka and Bangladesh, the CBEC has on 31.1.2014 initiated a verification process on certificate of origin received under SAFTA, SAPTA and ISLFTA for import of cycles and cycle parts.
Bicycles attract basic customs duty (BCD) of 30 per cent while specified parts of bicycles attract BCD of 20 per cent, it said.
India’s biggest cycle manufacturers’ hub, Ludhiana has been facing more than Rs 500 crore loss per year due to massive imports from China, higher tax regimes and crisis of skilled labourers, according to United Cycle and Parts Manufacturers Association (UCPMA).
India is the world’s second largest bicycle manufacturer after China, the size of the Indian bicycle industry worth USD 1.2 billion. The country’s annual production of bicycle stands at 15 million units.
On the other hand, the global bicycles market is worth USD 61 billion. As many as 130 million bicycles are sold every year globally and 66 per cent of them are made in China. China is believed to be producing two out of every three bicycles made globally. (KNN Bureau)
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