FICO Delegation Meets MSME Director, Seeks Resolution of Key Issues Facing Punjab’s Bicycle Industry

Ludhiana, October 11, 2026: A delegation of the Federation of Industrial & Commercial Organization (FICO), led by its President, Gurmeet Singh Kular, met Md. Salik Parwaiz, Director, MSME, Government of India, and submitted a detailed representation seeking government intervention to address key issues facing Punjab’s bicycle industry.
The delegation included K.K. Seth, Chairman; Rajiv Jain, Senior Vice President; Harpal Singh Bhamber, Joint Secretary; Ashpreet Singh Sahni, Organising Secretary; and Avtar Singh Bhogal, Head of the Bicycle Division. Deepak Chechi, Assistant Director, MSME-DFO, Ludhiana, was also present.
The delegation highlighted the importance of Punjab’s bicycle industry, particularly in Ludhiana, one of India’s major bicycle manufacturing hubs. The industry supports an extensive network of MSMEs, component manufacturers, traders and ancillary units, providing employment to a significant number of people.
The delegation raised several key issues and put forward the following demands:
Rationalisation of the Inverted GST Structure: Raw materials used in bicycle manufacturing attract 18% GST, while finished bicycles and several bicycle parts are taxed at 5%. This results in the accumulation of Input Tax Credit (ITC), blocking manufacturers’ working capital. FICO requested a review and rationalisation of GST rates on major raw materials and inputs to bring them down to 5%.
Technology Upgradation Fund (TUF) Scheme for the Bicycle Industry: FICO demanded a dedicated Technology Upgradation Fund (TUF) Scheme offering financial assistance of up to ₹40 crore for eligible industrial units and projects. India produces around 1.30 crore bicycles annually, compared with approximately 20 crore in China. Financial support for modern machinery, automation and advanced technology would help improve productivity, product quality and global competitiveness.
Production Linked Incentive (PLI) Scheme: Ludhiana’s bicycle industry relies on an extensive network of MSMEs manufacturing bicycle parts and components. FICO requested a dedicated Production Linked Incentive (PLI) Scheme for MSME ancillary units to ensure a level playing field and strengthen the entire bicycle manufacturing ecosystem.
Standardisation of Complete Bicycles: FICO called for comprehensive quality and safety standards for complete bicycles and their components, to be developed in consultation with industry stakeholders, the Bureau of Indian Standards (BIS) and MSME associations. It also sought adequate testing facilities and MSME-friendly compliance procedures to ensure product safety, durability and consistent quality.
Modernisation of the R&D Centre for Bicycles, Ludhiana: FICO requested the modernisation of the Research and Development Centre for Bicycle and Sewing Machine in Ludhiana. It proposed equipping the Centre with advanced machinery, modern testing laboratories and internationally benchmarked research and certification facilities. This would enable MSMEs to access affordable testing, technical support and product development services.
Establishment of a World-Class Testing Laboratory in Ludhiana: FICO demanded the establishment of a state-of-the-art testing laboratory for complete bicycles and their components, offering testing and certification in accordance with internationally recognised standards. The facility would help reduce testing costs for MSMEs, improve product quality and support the expansion of bicycle exports.
Reinstatement of the Credit Linked Capital Subsidy Scheme (CLCSS): FICO sought the reinstatement of the Credit Linked Capital Subsidy Scheme (CLCSS) to help MSMEs upgrade technology and modernise their manufacturing facilities. It proposed a capital subsidy of 25%, with an enhanced eligible investment ceiling of ₹5 crore. Reinstating the scheme would ease the financial burden on small manufacturers, encourage investment in modern machinery and improve productivity and competitiveness.
Strengthening the International Cooperation Scheme for Overseas Visits: FICO requested the strengthening and expansion of the International Cooperation Scheme to facilitate MSME participation in international exhibitions, trade fairs, buyer-seller meetings and overseas industrial visits. It sought financial assistance for international airfare and other eligible expenses to make overseas participation more affordable. The initiative would help manufacturers explore new markets, understand global technologies, build international business relationships and expand exports.
The delegation emphasised that the bicycle industry is a traditional strength of Punjab and has immense potential for production growth, employment generation, exports and technological advancement.