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The Government should waive taxes on cycles that cost less than Rs 5,000 to promote cycle ownership in the country, says a new study. The Energy and Resources Instituteat an event in New Delhi. It is a detailed study on cycling and the cycle industry in India.
Dr R K Pachauri, Director General, TERI,
Pankaj Munjal, Co-Chairman and MD, HERO Cycles and Member, AICMA,
The report examines the key trends and issues with regard to the growth in cycle ownership and its use, as well as the growth of the Indian cycle industry. It also recommends that the Government should waive the taxes on cycles bought by low-income populations (cycles costing less than Rs 5,000). The government should also ensure easy availability of cycle finance, by including cycles under the priority sector lending. It should also work towards increasing ownership of cycles by school children by distributing free or subsidized cycles to them.
Key Trends
The report finds that the growth of cycle ownership has been very slow and the household cycle ownership increased by only three per cent annually during the last decade. Moreover, the share of cycling as a mode of transport has been steadily declining, despite average trip lengths in cities being convenient for cycling. Some of the key recommendations of the report include: Ensuring provision and maintenance of cycling infrastructure in cities; making non-motorized transport (NMT) projects a mandatory requirement for Central funding; implementing city-wide cycle-sharing schemes; and, initiating awareness campaigns to promote cycling.
The report finds that the bicycle production capacity has recorded a moderate average annual growth of four per cent during the last five years. Bicycle sales have recorded a moderate growth rate of about six per cent in the last five years. Exports have grown at an average rate of about 10 per cent annually in the last five years, but imports have grown at a much faster rate (about 25 per cent annually) during the same period, primarily due to imports from China.
Strengthening the sectorhttp://www.teriin.org/files/Cycling_Report_LR.pdf
Source: TERI Press Release
Dr R K Pachauri, Director General, TERI,
"Cycling as a means of providing mobility has substantial benefits, such as lower levels of air pollution and affordability for the poorest sections of society. Additionally, for urban dwellers leading sedentary lives, the use of bicycles provide physical exercise which is good for physical and mental health".
The report examines the key trends and issues with regard to the growth in cycle ownership and its use, as well as the growth of the Indian cycle industry. It also recommends that the Government should waive the taxes on cycles bought by low-income populations (cycles costing less than Rs 5,000). The government should also ensure easy availability of cycle finance, by including cycles under the priority sector lending. It should also work towards increasing ownership of cycles by school children by distributing free or subsidized cycles to them.
Key Trends
The report finds that the growth of cycle ownership has been very slow and the household cycle ownership increased by only three per cent annually during the last decade. Moreover, the share of cycling as a mode of transport has been steadily declining, despite average trip lengths in cities being convenient for cycling. Some of the key recommendations of the report include: Ensuring provision and maintenance of cycling infrastructure in cities; making non-motorized transport (NMT) projects a mandatory requirement for Central funding; implementing city-wide cycle-sharing schemes; and, initiating awareness campaigns to promote cycling.
The report finds that the bicycle production capacity has recorded a moderate average annual growth of four per cent during the last five years. Bicycle sales have recorded a moderate growth rate of about six per cent in the last five years. Exports have grown at an average rate of about 10 per cent annually in the last five years, but imports have grown at a much faster rate (about 25 per cent annually) during the same period, primarily due to imports from China.
Strengthening the sectorhttp://www.teriin.org/files/Cycling_Report_LR.pdf
Source: TERI Press Release
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