AAP MP Sahney urges PM to extend PLI schemes to bicycle, toy, leather industries

New Delhi: AAP MP Vikramjit Singh Sahney on Friday urged Prime Minister Narendra Modi to extend tax benefits under the production-linked incentive (PLI) scheme to bicycle, toy, and leather industries.

In a letter to Modi, the Rajya Sabha member said the incentives will provide much-needed support to manufacturers for enhancing quality, and compete effectively in the global markets. "I am writing to bring to your attention the pressing need for the extension of the PLI scheme to the bicycle industry, along with the toy and leather industries which is under consideration of your good office," he said.

The bicycle industry, he said, particularly in Punjab, is a significant contributor to its economy. Ludhiana, often referred to as the 'Manchester of India', accounts for a staggering 75 per cent of the country's total bicycle production and 92 per cent of bicycle parts manufacturing. The city's factories churn out over 60,000 bicycles every day, showcasing the sector's immense potential for growth and development. However, Sahney said, despite its promising outlook, the bicycle industry has been facing numerous challenges, particularly in the realm of exports.

"The recent decline in bicycle exports, as highlighted by the All India Cycle Manufacturers' Association (ACMA) data, is a cause for concern," he said. In 2023-24, total bicycle exports dropped to 436,720 units from 557,523 units in the previous year, he added. Further, he said one of the primary obstacles hindering the industry's growth is the lack of incentives and support for innovation and quality improvement. He said support is required to the domestic players so that they can compete in the global market, especially in regions like Europe, where there is great demand for Indian bicycles. Moreover, logistical challenges, such as high inland freight costs from Ludhiana to Mundra Port in Gujarat, coupled with import duties on Indian bicycles in Europe, further exacerbate the industry's competitiveness, he noted.

"In light of these challenges, I urge you to consider extending the PLI scheme to encompass the bicycle industry, along with the toy and leather industries. "This extension would provide much-needed incentives and support for manufacturers to enhance quality, innovate, and compete effectively in the global market," he said. The PLI scheme was announced in 2021 for 14 sectors, including telecommunication, white goods, textiles, manufacturing of medical devices, automobiles, specialty steel, food products, high-efficiency solar PV modules, advanced chemistry cell batteries, drones, and pharma, with an outlay of Rs 1.97 lakh crore.