According to foreign media reports, the Indian government began to implement energy conservation and emission reduction in October last year, and strive to replace the existing 750 million incandescent lamps with LED bulbs. However, due to the late start of the LED manufacturing industry in the country, it is very likely that the LED Light bulbs of about 240 billion rupees will be spent in China.
Although the cost of the LED lamp is higher than that of the conventional illumination source, it has the characteristics of energy saving and long service life. Therefore, local companies believe that the Indian LED market will become saturated in the next two years.
It is reported that orders may eventually be upgraded to 2 billion energy-saving light bulbs, each calculated at 120 rupees, the total contract is expected to reach 240 billion rupees.
SaidPraveenKhandelwal, secretary-general of the All India Traders Association (CAIT), said that the status quo of the Indian LED industry is contrary to the "Made in India" strategy proposed by Prime Minister Modi. Even large-scale LED manufacturing companies import energy-saving light bulbs directly from China, and do not have the capacity required by the market, let alone small businesses. “It takes at least six months for Indian companies to increase production capacity,†he added.
Although the Indian government has announced many preferential policies and measures to promote the country's LED manufacturing industry, it is a bit late. There are many companies in India that assemble, design and manufacture LED lights, but LED chips are mainly imported.
“The LED lighting market is still in the early stage of growth in India. Local companies are not fully aware of the production technology of core components. In the next two years, the government will continue to encourage domestic manufacturing and drive market growth,†said Ajay Mathu, director of the Energy Efficiency Bureau of India.
According to industry insiders, India's LED industry has grown by more than 50% in the past five years (2010-2014) and is expected to maintain this growth rate in the next five years (2015-2019). By 2021, the market size is expected to exceed US$2.2 billion.
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