Amidst strengthening of dollar which certainly is benefiting in the exports due to higher realisation, some benefit is likely to accrue to the domestic manufacturers in Ludhiana who could gain.
Reason being with dollar strengthening imports have become costlier proposition and domestic industry feels they could be benefited to some extent. Many bicycle manufacturers import either bicycles (Children and High-end bikes) or their components from China. As per United Cycle & Parts Manufacturers Association (UCPMA), there is annual import worth Rs 500 crore of bicycle parts from China in India. Onkar Singh Pahwa, MD, Avon Bicycles Ludhiana maintained few bicycle manufacturers in Ludhiana import components of children and high-end bicycles.
However, now with the imports becoming costlier chances are there local manufacturers could benefit provided they are able to match the quality. Avtar Singh, general secretary, Chamber of Industrial and Commercial Undertakings (CICU) maintained definitely there has been some check on the bicycle component imports from China, owing to dearer imports.
The bicycle component manufacturers maintain since import of bicycle and their components from china was limited the benefit, hence benefit translated because of costlier imports would also be limited.
DS Chawla, Past President United Cycle & Parts Manufacturers Association (UCPMA) maintained now there would be more local bicycle components sourcing especially that requires low value addition. Even sewing machine manufacturers in the city admit that small benefit is being derived through the move.
Dalbir Singh Dhiman, Chairman, Sewing Machine manufacturing Association, maintained marginal benefit was being observed by the domestic sewing machine manufacturers as there was check on sewing machine part imports.
S C Rehlan, Regional Chairman, Engineering Export Promotion Council(EEPC) maintained costlier imports certainly was an opportunity for the domestic industry to stand back on its feet.
