Structure growth and prospects of bicycle industry a case study of Punjab

Abstract

Bicycle industry of India caters to the needs of 10 per cent of global population at present. The state of Punjab in India accounts for the production of 92 per cent cycle parts and 75 per cent bicycles in India. Ludhiana is the hub of bicycle and cycle parts manufacturing, not only in Punjab but also in India, and is popularly known as the Bicycle capital of India . Against this background the present study analyzes the market structure, growth and prospects of Bicycle and cycle parts industry of Punjab. In addition to this, the study also explores the problems of workers and entrepreneurs employed in Bicycle and cycle parts industry of Punjab. The most important entry barrier for firms wishing to enter Bicycle and cycle parts industry of Punjab is competition, posed by already established domestic firms and foreign firms. Approximately 65 per cent firms in the industry practice product differentiation and differentiate their products mostly on the basis of quality, price charged and product design. The growth of Total Production and Total Fixed Capital Investment in Bicycle and cycle parts industry of Punjab accelerated in post-liberalisation period as compared to the pre-liberalisation period whereas the growth of Total Exports, Total Employment and Total Number of Units of the industry declined in the post-liberalisation period as compared to its levels during pre-liberalisation period. Forecasts of Total Production, Total Exports, Total Employment and Total Number of Units of Bicycle and cycle parts industry of Punjab indicate a rise in the years to come while that of Total Fixed Capital Investment point towards a decline. The workers in Bicycle and cycle parts industry of Punjab are facing the problems of proper remuneration and safety, working conditions and provision of basic facilities and the entrepreneurs in the industry are afflicted by the problems of resource constraints, changing scenario, mounting costs and unanticipated bottlenecks. newline