‘Blow to Make in India’: Cycle manufactures flay import duty cut
The manufactures said that the move will boost the influx of imported bicycles into the market, resulting in losses for them
The local manufacturers on Sunday hit out at the Union Budget for slashing import duty on cycles from 35% to 20%.
The announcement was made by Union finance minister Nirmala Sitharaman while announcing the budget on Saturday.
Manufacturers say the import duty cut is a blow to ‘Make in India’, Prime Minister Narendra Modi-led government’s flagship decision.
They said the move will boost the influx of imported bicycles into the market, resulting in losses for them.
Industrialist Badish Jindal termed the decision ‘unjustified’ and raised concerns about ‘under-billing’ from China. “For a long time, we have been demanding a minimum import price on imported bicycles and their parts. Instead, the government has slashed import duty,” he said.
United Cycle and Parts Manufacturers Association (UCPMA) president Harsimrajit Singh Lucky said the industry will not allow the decision’s implementation under any circumstances. He added that a delegation of traders will soon meet Bharatiya Janata Party (BJP) leaders to express their concerns.
Industrialists raise concerns over MSME classification
The Federation of Punjab Small Industries Associations (FOPSIA) objected to the inclusion of industries with a turnover of up to ₹500 crore under the Micro, Small and Medium Enterprises (MSME) category. According to the association, nearly 99% of small industries operate with a turnover of less than ₹1 crore.
The association argued that large enterprises with ₹500 crore turnover will ‘unfairly’ benefit from government schemes meant for small businesses, pushing the latter out of competition. The association urged the Centre to reconsider the classification to ensure fair access to financial and policy support.
