It’s right time to capture i’ntl cycle market: FICO

Tribune News Service

Ludhiana, February 16

Ludhiana bicycle industry feels that this is the right time to capture the European and American markets as these countries have temporarily halted the import and export of products from China due to the spread of coronavirus.

KK Seth, Chairman, and Gurmeet Singh Kular, President, Federation of Industrial & Commercial Organisation (FICO), have sought support from Prime Minister Narendra Modi in this regard. Seeking support for the Indian bicycle industry, FICO has written a letter to the Prime Minister.

Seth said: “Due to increase in the cases of coronavirus, the Chinese bicycle market is unable to fulfil the export orders of Europe and the US. The fall in the production of Chinese products is a huge opportunity for Indian bicycle manufacturers to capture the European and American markets. The Indian bicycle manufacturers need the support from the government.”

“The support is needed in terms of interest-free loans. The government should introduce a finance scheme that will cater only to the Micro, Small and Medium Enterprises (MSMEs) sector, and provide them with loans and credit interest-free with a simplified procedure and documentation.

As the MSME sector needs funds, the process of getting credit from the current banking system is cumbersome and the rate of interest is also on a higher side. There is a need to provide the bicycle industry a scheme with simplified approach to avail the credit at zero rate of interest,” they added.

“The bicycle industry is the mother industry of Punjab which makes India the second-largest manufacturers of bicycles, whereas China is the largest manufacturer of bicycles, but the gap between the manufacturing quantity of both is huge. Unfortunately, India does not have the technology to produce high-end bicycles at competitive prices. There is a need for the government to support the bicycle industry by introducing a technology upgrade fund scheme, so that it gets the benefits up to Rs 40 crore and can capture the global market,” they further added.

The FICO members further said: “European and American markets demand high-end products, which can only be manufactured by high-end raw material such as titanium alloys, carbon steel, carbon fibers etc. Sadly, these materials are not widely available in India, if available, then at too high prices. It is the need of the hour to provide the Indian manufacturers with high-end raw materials at global prices.

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