Legislator vouches for lower GST on bicycles

Rajya Sabha MP from Ludhiana Sanjeev Arora, in a meeting here, said reduction in GST on bicycles would not only provide a boost to the bicycle manufacturing industry but also improve affordability, promote healthier lifestyles and contribute to environmental sustainability, while supporting rural and low-income.

In a statement here today, he said presently the bicycle industry was facing many issues such as high production cost, low penetration in rural areas and decline in domestic manufacturing.

Further elaborating the issues being faced by the industry, the legislator said raw material prices, including steel and aluminum, have risen significantly. In 2021, steel prices went up by more than 50 per cent, and aluminum increased by nearly 40 per cent globally.

He added rising input costs had forced many manufacturers to either increase prices or reduce their margins, straining profitability, particularly for small and medium enterprises (SMEs).

He said the higher cost due to GST and raw materials had limited rural consumers’ ability to purchase bicycles, contributing to the low ownership rates.