Festive lights cast shadow on Indian industry

Chinese decorative lights continue to dominate Diwali, one of India's biggest festivals, by beating Indian ones on price, quality and service despite calls of Indian authorities to bring down dependency on Chinese products.

Indian consumers are eager to buy festive lights and LED lights made in China to adorn their homes during the annual Diwali celebrations, which have just begun.

The Hindu festival of lights is a five-day event, with this year's celebrations starting on Friday and the main festival falling on Sunday.

Despite the government's efforts to reduce dependency on Chinese-made goods, the demand for decorative Chinese lights remains strong in the country, and importers had rushed to secure their shipments for Diwali, importers and industry insiders said.

Decoration with lights is one of the quintessential parts of Diwali because it symbolizes the triumph of light over darkness and good over evil.

Decorative lights made in India or imported from other countries cannot compete with Chinese products on price, said Samir Mehta, president of the Electric Merchants' Association in Mumbai.

"Besides price, if you want varieties then there are no other options than Chinese products."

Niren Dharia, a former president of the association, said Chinese lights are likely to dominate the Indian market for the foreseeable future.

Bhagirath Palace in New Delhi, said to be one of the largest wholesale markets for electrical and electronics goods in South Asia, has been largely dominated by Chinese decorative lights for the past month, and it will continue to enjoy robust sales before Christmas and new year festivities, shop owners in the market said.

Indian-made products are expensive compared with their Chinese alternatives, said Anup Yadav, a member of the Bhagirath Palace Market Association.

People used to ask whether a product was made in India or China, but now buyers are only concerned about the price, Yadav said.

A number of Indian manufacturers have converted their festive lights warehouses to store imported Chinese decorative lights or LED lights because of the dearth of demand for Indian-made lights, Yadav said.

A set of light decor made in China is priced between $3 and $12, depending on the style and function, whereas the same will cost double or triple if it was made in India, said Ashutosh Tripathi, a shop owner in the Bhagirath Palace market.

The Indian products are more expensive for other reasons, including high taxes and a scarcity of raw materials, said Anuj Sharma, a wholesale supplier of Chinese decorative and LED lights in the Bhagirath Palace.

'Finest products'

Hiren Patel, an importer of Chinese LED and decorative lights, said, "We do not get many varieties from Indian manufacturers, and China can deliver the finest finished products at a cheap rate."

Chinese LED lights are becoming even more popular in India, the China Chamber of Commerce for Import and Export of Machinery and Electronic Products said.

In the first half of last year China exported $710 million worth of LED light-related products to India, 135.3 percent more than in the corresponding period in 2020, the chamber said.

India's Prime Minister Narendra Modi has said "Make in India" is the need of the moment and has appealed to industry to reduce dependence on imports and boost domestic manufacturing.

India has a huge trade deficit with China. China's exports to India in the first half of this year totaled $56.53 billion, China's General Administration of Customs says. India's exports to China during the same period totaled $9.49 billion.

China is reaping the benefits of its opening-up policy, targeting the global market, said Biswajit Dhar, a former professor of economics in the Centre for Economic Studies and Planning at Jawaharlal Nehru University in New Delhi.

China's huge economy provides it with a significant advantage that other countries cannot compete with, Dhar said.

The writer is a freelance journalist for China Daily.