Ludhiana, June 25 (KNN) The renowned Ludhiana bi-cycle industry which is home to over 1500 factories making bicycles and components, providing employment to 0.25 million people will perish in few years due to lack of technology and no concern for the cycle industry on the part of the government, said Rajeev Jain, General Secretary of All India Cycle Manufacturers Association.

“There is no concern for the cycle industry on the part of the government because they prioritize big cars over nature which is a serious threat to the environment as well. RBI should reduce interest rate, compare to international industry rate, simplify the process of loan,” exhorted Rajeev while talking to KNN India.

Over the years, a stiff competition has been well-graphed with China who are undoubtedly the leading bicycle manufacturing country in the world. While some believe that India may soon tip the Chinese, there are a few that feel that this ambition is too far-fetched because of the government’s negligence of the industry.

Jain said “There is no competition between India and China. India ranks as the 2nd largest producer of bicycles in the world. They (China) produce over 20 crore bicycles every year as compared to out 1.5 crore. We are no match for China, they will be superior than India and we have done nothing but copy their goods. We try to sell everything we can, but there is no assurance of the sale.”

Highlighting the challenges, he stated that banks do not pose as a serious threat because we do not have a highly structured and organized industry. Only a few players like Hero are able to procure loans easily while the MSMEs are only accessible to bank loans on the basis of their credibility.

Raw materials are every expensive here in India and importing them from China would obviously be more expensive. Technology is obsolete which only adds to the issues, he pointed.

He further added “We believe that until there is modern technology being applied in the manufacturing process the industry will suffer and perish.”

Among those that will be affected by the demise of the industry will be Ludhiana which is houses the largest cycle manufacturing enterprises.

There is a trend developing in the cycle industry in Ludhiana with a lot of units closing and President of the Association, was critical of the situation and blamed the banks for their negligence towards the industry itself.

More than 25000 cycles per day are manufactured in Ludhiana alone. The city is home to over 1500 factories making bicycles and components, providing employment to 0.25 million people and today it is a jewel in the crown of India’s industrial cities, according to the All India Cycle Manufacturers Association. (KNN/K)