Diwali 2025: As millions of homes across India light up with LED strings and decorative fixtures for Diwali, a closer look at the supply chain behind these festive products reveals a deeper economic concern. Despite government campaigns promoting ‘Make in India’ and ‘Buy Swadeshi’, the majority of Diwali lights and accessories sold in Indian markets continue to be imported from China, further widening the trade deficit between the two nations.
A visit to one of Delhi’s largest electrical and hardware markets revealed a clear contrast in pricing and supply. Chinese-made 10-meter LED string lights are widely available at Rs 95-110 per piece. In comparison, Indian-made alternatives are priced significantly higher, around Rs 220 each, despite offering better quality.
Retailers report that while some customers are beginning to choose Indian-made lights for their durability, compatibility issues persist. For instance, the plugs of domestically manufactured lights often do not fit into commonly sold Chinese connectors. As one store staffer explained, there are no readily available Indian-made connectors that match these new designs, leaving buyers to resort to makeshift solutions or jugaad methods.
This mismatch highlights a broader issue in the Indian manufacturing ecosystem: the lack of an integrated supply chain management system. Unlike China, which has developed a mature industrial framework that manufactures components like connectors alongside LED lights, Indian manufacturers are yet to close the loop on end-to-end product development.
Diwali: Lighting Up China’s Economy
According to a 2022 report by Global Times, China exported LED light-related products worth $710 million to India in the first half of that year, marking a 27% year-on-year increase. India’s trade deficit with China has now reached $99 billion in the 2025 financial year, with festive lighting products contributing to this growing gap.
Chinese analysts remain confident that India will not challenge their dominance in the near future. Liu Zongyi, a researcher at the Shanghai Institutes for International Studies, told Global Times, “Although India has been vigorously developing its manufacturing industry over recent years, it has not formed the advantages of a full industrial chain, mainly due to the relatively low quality of labour, the lack of support policies covering land and taxation, in addition to less developed infrastructure.”
Why Indian Manufacturing Still Stumbles
Meanwhile, in India’s largest electrical wholesale market, Bhagirath Palace in Old Delhi, Chinese-made products dominate the shelves. In a 2023 interview with China Daily, Anup Yadav of the Bhagirath Palace Market Association stated that many Indian manufacturers had converted their warehouses into storage for Chinese imports due to declining demand for Indian-made festive lights.
The data paints a challenging picture for Indian micro, small, and medium enterprises (MSMEs), which form the backbone of the country’s manufacturing sector. Experts argue that without urgent reforms in land acquisition, labour laws, and access to capital, these businesses will struggle to compete, not just with China, but in a rapidly globalising market.
A Lightbulb Moment For Indian Industry?
As India gears up for another festive season, the glowing Diwali decorations tell a story of missed opportunities and systemic gaps. For the dream of a self-reliant India to become a reality, industry observers stress the need for holistic reforms and coordinated manufacturing strategies that serve both economic and consumer needs.
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: ZEE News
