Every year during Diwali, homes across India light up with colourful LED string lights, glowing lanterns, and bright decorations. The lights sparkle on balconies, temples, shops, and streets, spreading joy and celebration. But behind this beautiful sight, there’s a hidden story about where these lights come from and what they reveal about India’s manufacturing and trade.
If you walk through any busy market in Delhi, Mumbai, or Jaipur, you’ll find two main types of string lights, one made in China and another labelled “Made in India.” At first glance, both look the same. The Chinese ones usually cost around ₹95 to ₹110 and can be plugged in and used right away. The Indian ones are often sold for around ₹220 and may even look more stylish and durable. But here’s the catch: many buyers find that the plugs on the Indian-made lights don’t fit into regular sockets. Shopkeepers then suggest a quick fix, or what we Indians call “jugaad”, to make them work. This small detail shows something much bigger: even when the product says “Made in India,” some of its key parts, like connectors or plugs, still come from outside the country.
This problem points to a bigger issue in India’s manufacturing chain. We are able to produce some parts of a product, like the LED bulbs or the wiring, but we often depend on imports for other smaller components. So, while an Indian factory might assemble the final lights, it might still rely on imported connectors, plugs, or even chips that go inside the lights. This lack of full integration in the supply chain is one of the reasons why India still depends so much on imported goods.
Meanwhile, China has built a completely different kind of system. Chinese manufacturers produce everything under one roof, from the tiniest wire to the finished product. This not only reduces their production costs but also helps them maintain quality and speed. That’s why, year after year, Chinese LED lights continue to flood the Indian market. To give you an idea of how big this trade is, China exported more than $700 million worth of LED light-related products to India in just the first half of 2022. And this number has kept rising every year.
Because of such large imports, India’s trade deficit with China, which means we buy more from them than they buy from us, has grown sharply. In the 2025 financial year, this deficit was around $99 billion. Even though decorative lights may seem like a small part of trade, the total value adds up when millions of Indian households buy these products every festive season.
Now, why can’t India’s factories compete with Chinese ones? There are several reasons. First, Indian manufacturers, especially small and medium-sized ones, face higher costs for labour, land, electricity, and taxes. Second, they don’t always have access to high-quality raw materials or advanced technology. Third, the supply chain in India is not as well connected, meaning that different parts are made in different places, often far apart, which raises costs and slows down production.
On top of that, Indian consumers are very price-conscious. Most families would rather buy the cheaper set of lights, even if it’s imported, instead of paying double for a local one. This price difference gives Chinese products a strong advantage in the Indian market. Even when Indian products are of better quality, many buyers still choose the cheaper option.
So, what can India do about this? If the country truly wants to make “Make in India” a success, it needs to build a strong and complete manufacturing ecosystem. That means producing every part of a product, from small wires to finished goods, locally. It also means better coordination between industries, better technology, and more government support for small businesses.
At the same time, consumers also have a role to play. If we want to reduce dependence on imports, we need to support local manufacturers, even if it costs a little more in the short term. This will help Indian industries grow stronger and more self-reliant over time.
