Indian bicycles set to ride smoother into Australia as compliance rules ease
Australia plans to ease safety regulations for pedal bicycles, potentially boosting Indian exports amid US tariff pressures. The ACCC is reviewing compliance standards to align with global norms, facilitating trade and making the Australian market more accessible for Indian firms.
New Delhi: Australia is preparing to ease and simplify its stringent safety and compliance rules for pedal bicycles, in a move that could boost Indian exports that are under pressure from steep US tariffs.
The Australian Competition and Consumer Commission (ACCC) has notified the World Trade Organization (WTO) that it is reviewing its mandatory safety standards for pedal bicycles to align them with global norms.
Compliance simplified
This is expected to make exports smoother for India, the world's second-largest bicycle manufacturer. Indian exporters have been facing delays and higher costs due to Australia's tough compliance tests, even though import duties were already removed under the India–Australia Economic Cooperation and Trade Agreement (ECTA).
“The new regulatory alignment could, therefore, make the Australian market more accessible to Indian firms, and help shift a part of their export base from lower-value African destinations to a high-income, high-demand market such as Australia," said Rajeev Batra, director of Kiddies Center, a Delhi-based cycle trading firm.
According to the WTO document submitted by Australia on 9 October, and reviewed by Mint, the country is reviewing its 1998 bicycle safety standard to align it with global norms. The review aims to expand compliance options for suppliers and simplify testing by referencing updated Australian and international standards, it said.
As per World Bank data, India’s exports of bicycles and parts to Australia stood at $0.7 million in FY23, rose to $1.21 million in FY24, before declining to $0.75 million in FY25.
India’s exports of bicycles and parts to the US rose sharply from $12.55 million in FY23 to $19.63 million in FY24, and further to $35.02 million in FY25.
During the same period, India’s global exports of bicycles and parts increased from $968.82 million in FY23 to $1.02 billion in FY24, and $1.2 billion in FY25, reflecting steady overall growth in the sector, the trade data showed.
“India’s exports of bicycles and parts have grown strongly in recent years, driven by rising global demand for mid- and low-cost bicycle components," said Ajay Srivastava, co-founder of the Global Trade Research Initiative (GTRI).
“The growth in bicycle exports reflects India’s increasing competitiveness in supplying parts and medium-value bicycle assemblies to both developing and developed markets," he added.
As per the document, including these voluntary international and overseas standards as compliance options would allow the supply of pedal bicycles in Australia without requiring additional testing under the voluntary Australian standard.
This move is expected to reduce regulatory burdens for suppliers and facilitate trade. The document also clarifies that significant changes, such as altering the scope of the mandatory standard or major performance requirements, are not being considered as part of this limited review.
Tariff pressure
“It will definitely create an opportunity for the Indian bicycle industry amid the ongoing tariff war," said K.B. Thakur, secretary general of the Delhi-based All India Cycle Manufacturers' Association (AICMA).
The US has imposed 50% tariffs on a wide variety of Indian exports.
“India follows globally accepted standards, and our products are well-recognised in international markets. Indian exporters are already supplying high-end bicycles to European countries, while a major share of shipments goes to African nations. Australia is also emerging as a promising market for the sector. At a time when tariffs in the US are soaring, Indian exporters will certainly look to tap new opportunities in such evolving markets," said Thakur.
“Simplifying compliances is a welcome move for Indian manufacturers. It will help diversify India’s bicycle exports to Australia, and allow exporters to take better advantage of the FTA between the two countries," Batra added. “It will give India an added advantage at a time when the world is adopting the China Plus One policy, as India is emerging as a viable alternative to meet global demand across various sectors," Batra said.
Earlier, Mint reported on 12 July 2024 that demand for India-made bicycles has surged in Europe, particularly in the UK, Germany, and the Netherlands — often called the world’s bicycle capital.
topics
