AT CROSSROADS: How crucial sectors fear they would fare if deal is on

DAIRY FARMING 

Dairy cooperative and private players in Punjab apprehend that inclusion of dairy products in the Regional Comprehensive Economic Partnership (RCEP) pact would allow import of cheaper milk and dairy products, adversely affecting the livelihood of lakhs of farmers in the state. The daily production of milk in Punjab is around 360 lakh litres. New Zealand and Australia particularly are negotiating hard with India to reduce the duty on dairy products so that they can get access to India, the world’s largest market of dairy products.

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TEXTILE SECTOR

The RCEP will reportedly allow free import of polyester fabrics from China, Vietnam, Bangladesh and other countries, which could lead to cheaper textiles, affecting an already-hit sector, says Harish Dua, a readymade garment exporter from Ludhiana. Punjab contributes 15-20 per cent of the total readymade garment exports from India. The textile mills in the northern region have a combined turnover of Rs 50,000 crore. The apprehension is that cheap Chinese goods may put pressure on domestic sales at a time when the international business has been under threat from Bangladesh and Vietnam.

AUTO COMPONENTS

The Automotive Component Manufacturers Association of India (ACMA) feels the RCEP could allow a “back-door entry route” for China. The sector is already in doldrums because of the slowdown in auto sales. The labour-intensive sector has a significant presence in Punjab, especially Ludhiana and Jalandhar, with majority of the units in the micro and small category. The owners claim that signing of the pact will lead to job losses and hurt the ‘Make in India’ project. With Haryana combined, it meets nearly 30 per cent of the demand of the auto industry in the country. Haryana has the maximum number of auto component units and share in the country.

BICYCLE INDUSTRY

Ludhiana is the hub for bicycle manufacturing in the country. According to the Indian Bicycle Manufacturers Association, Ludhiana has been producing over 1.5 crore bicycles per annum with the support of small and medium ancillary units. In a representation to Union Minister of State for Commerce and Industry Som Parkash, the bicycle industry said that imports from China through SAFTA countries has already hit them hard and if the RCEP agreement is accepted for cycles and parts, India’s bicycle industry will not be able to compete and would be forced to diversify.