How Bright Lights Of Diwali Hide A Dark Trade Truth Between India And China | India News
Diwali 2025: As millions of homes across India are lit up with LED strips and decorative fixtures for Diwali, a closer look at the supply chain behind these festive products reveals a deeper economic concern. Despite the government’s ‘Make in India’ and ‘Buy Swadeshi’ campaigns, the majority of Diwali lights and accessories sold in Indian markets continue to be imported from China, further increasing the trade deficit between the two countries.
A visit to one of Delhi’s largest electrical and hardware markets revealed a clear contrast between pricing and supply. China-made 10 meter LED string lights are widely available at Rs 95-110 per piece. In comparison, the price of Indian-made alternatives is significantly higher, at around Rs 220 each, although they offer better quality.
Retailers report that while some customers are choosing Indian-made lights due to their durability, compatibility issues remain. For example, plugs for domestically produced lighting often do not fit commonly sold Chinese connectors. As a store employee explained, the lack of availability of Indian-made connectors suitable for these new designs leaves buyers resorting to workarounds or ridiculous methods.
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This mismatch underscores a broader problem in the Indian manufacturing ecosystem: the lack of an integrated supply chain management system. Unlike China, which has developed a mature industrial framework that produces components such as connectors as well as LED lights, Indian manufacturers are yet to complete the end-to-end product development cycle.
Diwali: We Enlighten the Chinese Economy
According to a 2022 report by the Global Times, China exported LED light-related products to India worth $710 million in the first half of that year, up 27% year-on-year. India’s trade deficit with China reached $99 billion in fiscal 2025, and festive lighting products are also contributing to this widening gap.
Chinese analysts are confident that India will not challenge its dominance in the near future. “Although India has strongly developed its manufacturing industry in recent years, it has not been able to establish the advantages of a complete industrial chain, mainly due to relatively low labor quality, lack of support policies covering land and taxation, and less developed infrastructure,” Liu Zongyi, a researcher at the Shanghai Institutes of International Studies, told the Global Times.
Why Is Indian Manufacturing Still Stumbling?
Meanwhile, at Bhagirath Palace in Old Delhi, India’s largest electrical wholesale market, Chinese-made products dominate the shelves. Anup Yadav of Bhagirath Palace Market Association, in an interview with China Daily in 2023, stated that due to the decreasing demand for Indian-made festive lights, many Indian manufacturers have converted their warehouses into warehouses for Chinese imports.
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, labor laws and access to capital, these businesses will have difficulty competing not only with China but also in the rapidly globalizing market.
Lightbulb Moment for Indian Industry?
As India gears up for a new festive season, glittering Diwali decorations tell a tale of missed opportunities and systemic gaps. For the dream of a self-reliant India to become a reality, industry observers emphasize the need for holistic reforms and coordinated production strategies that serve both economic and consumer needs.
