FICO interacts with union minister regarding RCEP

Ludhiana, October 20, 2019: FICO has demanded to exclude Indian Bicycle Industry from the clutches of RCEP from Harsimrat Kaur Badal, Union Minister for Food Processing Industry.

Harsimrat Kaur Badal assured the delegation that “we will exclude bicycle & bicycle parts industry from RCEP & will not allow China to enter in India at cost of Make in India”.

Gurmeet Singh Kular, President, FICO met Harsimrat Kaur Badal and submitted the representation on the impact of RCEP agreement on bicycle industry, which is going to ruin the existing bicycle industry. It is notable that the bicycle industry is already facing a grave situation due to import thru SAFTA Countries/ under value import from China by unfair means apart from the heat faced thru Global/ Local recession.

Kular expressed his apprehension about Chinese Bicycle & Parts directly entering into Indian domestic market (who are enjoying 15% - 20% export benefits from Chinese Government), though there is a Import Duty @ 30% on complete bicycle & 20% on Bicycle Parts, even then we are finding it hard to compete with Chinese Bicycles & Parts, we apprehend if RCEP agreement is accepted for Cycle & Parts Industry of India, the existing Bicycle Industry will not be able to compete & may have to find their existence in alternate business, resulting in the India Bicycle Industry in history books.

Further discussing on the impact, Kular said Chinese Bicycle & parts which are already cheaper by 15% - 20% & already giving a threat to Indian Bicycle Industry, which is running only on short bread cuts, that is ultralow profitability will be put on knees with such a huge price difference.

Kular further showed his concern that if European & American Governments can impose heavy duties @67% on China made bicycle & parts then Prime Minister Narendra Modi can also provide safeguard to Indian bicycle industry by imposing heavy duties & not to get include RCEP on bicycle & bicycle parts.

Manjinder Singh Sachdeva, President, BRADO & General Secretary FICO cautioned the Union Government giving the statistics about the negative impact directly or indirectly to exchequer due to RCEP. He gave interesting figures of employment thru bicycle industry that is direct/indirect employer of 5 lac persons which contribute to nearby 25 lac families & nearby 1.25/1.5 Cr Indian finding their bread & butter from these Cycle & Parts Manufacturing Industry. Giving a caution, if the free flow of Chinese product is allowed thru RCEP, the unemployment generation will be beyond imagination for the exchequer that is already working hard to give employment to the unemployed youth & providing budgetary support to the tune of 60000 crores in current year to give 100 days’ employment in a year thru MANREGA. If the multiplying factor of unemployed due to negative impact of RCEP is calculated the financial burned on exchequer will shake the whole budged, apart from anarchy & its impact. He also feared/apprehended the involvement of unemployed in other anti-nation activities for which India is already striving.

Harpal Singh Bhamber, Head, Bicycle Division FICO presented the production of bicycles figure of India & China, in 2001 India was manufacturing nearly 1.31 Cr Bicycles as compared to 5.5 Cr manufactured by China, now after nearly 19 years India has reached nearly 1.75 Cr compared to nearly 17 Cr Bicycles by China. He emphasized that Industry is striving hard at their own without any technological/ financial assistance from any ex-chequer that is state/ centre. The other dent is given by none other than China, who are pushing hard their surplus bicycle production & dump of public sharing bikes, which are lying unused in abundance at China and are exporting to India thru unfair means, that is SAFTA & under invoicing directly to India. Quoting the statics, he further said that the contributing factors to the consistent rise in import of Chinese bicycle via Bangladesh & Sri Lanka at Zero import duty in India from these countries as agreed in SAFTA agreement (South Asian Free Trade Association) which provides duty free excess to Bangladesh & Sri Lanka bicycle suppliers to enter into India market with Chinese made Bicycle and parts. Talking on the RCEP (Regional Comprehensive Economic Partnership) will allow free excess to Indian market to the Chinese Bicycle Manufacturer which will give a direct impact to the domestic bicycle & parts manufacturer & also a direct threat for the already striving bicycle Industry. Mr. Chawla, President, briefed to the Press regarding the representations given to The PMO, Ministry of Finance, Commerce Ministry, M.S.M.E. Ministry and other related partners to take immediate steps to get Bicycle & Parts excluded from RCEP list.

Harsimrat Kaur Badal assured the delegation that "we will not allow China to enter in India at cost of Make in India. Soon a meeting with Narendra Modi Prime Minister of India will be arranged & Bicycle & Bicycle Parts will be excluded from RCEP".