India's ships cycles to world bicycle capital, exports surge

Bicycle orders are also flowing from developing countries such as Mozambique and Chad.

According to commerce ministry data, in FY2023, Mozambique emerged as India's top export destination for bicycles, valued at $8.84 million. This increased to $10.41 million in FY2024, marking a growth of 17.82%.

The UK followed as the second-largest destination, with exports rising from $3.85 million in FY2023 to $8.85 million in FY2024, a jump of 130%.

Exports to the Netherlands surged 169.38%.from $1.29 million to $3.47 million.

Overall, India's bicycle exports were up from $46.5 million in FY2023 to $54.38 million in FY2024, a growth of 16.95%, commerce ministry data showed.

“India's emergence as a preferred destination for bicycles in the UK, Netherlands, Chad, and other developed countries is a result of a combination of high-quality production, cost-effectiveness, diverse offerings, supportive trade policies, environmental consciousness, efficient supply chains, strong brand reputation, and market adaptability. These factors collectively make Indian bicycles an attractive choice for international buyers," said Abhas Kumar, a trade analyst and assistant professor, economics, Delhi University.

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“The China Plus One policy is working in favour of India. The disruptive policies of China have forced countries to look for alternatives, and due to its better ecosystem, India is proving to be a viable option to meet the global demand for various goods," said Ashwani Mahajan, National Co-Convener of Swadeshi Jagaran Manch (SJM), an RSS-affiliated organisation that deals with economic issues.

“The quality of India-made bicycles is much better than that of Chinese bicycles. Even though Chinese goods are cheaper, consumers prefer not to buy substandard products that may lead to additional expenses for their disposal," Mahajan added.

“There is a push for production through various Production Linked Incentive (PLI) schemes. This support is significantly aiding the manufacturing sector," he said.

Health consciousness a reason for growth in bicycle exports

Health experts see increasing health consciousness among people as another reason for the growth in bicycle exports in developed economies.

“Cycling is beneficial for heart health as it serves as an excellent aerobic exercise. It also aids in weight loss and helps manage cholesterol and blood pressure levels. Additionally, the reduction in pollution due to increased bicycle use is another factor contributing to its growing popularity in developed and developing countries," said Dr Ravi Wankhedkar, former treasurer, World Medical Association, which represents physicians worldwide.

“India's bicycle imports from China have dropped from $9.2 million in FY2023 to $4.4 million in FY2024. Though the import levels are relatively insignificant, the decline is likely due to increased domestic production and higher import duties of 30% on bicycles," said Ajay Srivastava, founder of Global Trade Research Initiative (GTRI), a think-tank.

Chad saw an increase in imports from India, with figures rising from $1.72 million to $2.65 million, marking a growth of 53.77%, the commerce ministry data showed.

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Exports to Nepal decreased from $6.92 million to $6.13 million, a decline of 11.51%. Germany also saw a slight decrease in imports from India, from $3.84 million to $3.64 million, a decrease of 5.37%. The trade saw a reversed trend as most of India’s top supplier of bicycles recorded a declining trend.

Starting with China that saw a decline of 52.42% in imports from worth $9.21 million in FY23 to $4.38 million in FY24. Vietnam, the second-largest supplier, also saw a reduction in imports from $4.53 million to $ 2.82 million, a decrease of 37.64%, the commerce ministry data showed.

Overall, India’s total bicycle imports fell from $30.97 million in FY2023 to $13.17 million in FY2024, a decline of 57.46%.

Conversely, imports from Taiwan increased by 33.98% from $1.53 million in FY23 to $2.04 million in FY24.

Sri Lanka experienced a drastic drop in bicycle exports to India, plummeting from $8.51 million to $1.2 million, an 85.86% decline. Also, imports from Bangladesh fell sharply from $4.56 million to $0.81 million, a decrease of 82.24%.