Nama may jam cycle industry

Industry seeks 'sensitive status' for bicycles to ward off China threat

Anticipating that probable slapping of tariff concessions would hit the growth of Indian bicycle industry, the sector has asked the government to list bicycles as a "sensitive product" under WTO's non-agricultural market access negotiations (Nama).

"The government should put the industry in the list of sensitive products as any tariff concessions on bicycle category under Nama could severely affect the industry," Satish Dhanda, president of Indian Bicycle Manufacturer Association, said here.

The Union commerce ministry and Unctad under the 'Strategies and preparedness for trade and globalisation in India' had sought the views of the bicycle industry representatives last month over drawing up of a list of "sensitive products" that will have less tariff reduction.

Rejecting the idea of making bicycles industry as part of Nama's sectoral initiative, an industry representative said, "China, which is being seen as threat to India, will be able to capture the Indian market by selling bicycles below the cost, once the tariffs are reduced on the category. Hence, domestic industry should be protected."

Unctad officials also wanted to know from industry representatives if aiding WTO's sectoral initiative on bicycle goods, going by which the tariff has to be brought to zero or near zero level, would be in India's interests.