LED Lights is one of the fastest-growing businesses in the world. While India is the second-biggest consumer of those lights. Can it also become the most important in manufacturing these? India’s LED story has been nothing spectacular if you consider a rustic that has been generally slow to adopt new technologies. The way India’s price-sensitive market has adopted LED lighting makes for an excellent story. After you study what LEDs offer, it won’t be hard to know why most Indian households have embraced this technology. LEDs are way more energy-efficient than their CFL and tungsten counterparts and also offer way more operational working hours. After you consider those advantages, the initial high price of LED bulbs looks like a justifiable sum of cash to distribute.
However, it’d be unfair to speak about India’s LED energy revolution without talking about the brilliant governmental factors that led to the current huge demand. Ever since PM Modi took over the reins of the country, he had a transparent idea regarding the energy situation within the country. Village electrification was one of all his biggest agendas upon election which led even India’s countryside to simply accept LED bulbs. The EESL (Energy Efficiency Services Limited) has had a large part to play during this wonderful narrative.
India’s LED Market
The Indian LED lighting market, as per a report by IMARC, reached a price of US$2.87 billion in 2019. The world lighting market size stood at US$115.44 billion in 2018 and is projected to achieve US$161.58 billion by 2026. China, India’s neighbor, is one of the highest exporters of LED lights. India, on the opposite hand, could be a big importer of LED lights and a range of components that get in these lights.
EFY interacted with Parag Bhatnagar, SVP, Havells; Raja Mukherjee, BU head, Panasonic Life, and Arun Kumar, big businessman, Signify. This interaction was chaired by Arpit Chhabra, CEO, IoTfy to search out the solution to 1 question: Can India lead within the LED manufacturing space?
“The adaptability of LED lights in India is probably the most effective in the world. We are poised to grow 15 percent YoY in terms of further adoption. The demand for LED lights is projected to grow at a rate of 23 to 24 percent each year till 2023-24. India, with its base of around 100 manufacturers, is ready to meet this need but there are challenges on the aptitude front,” says Mukherjee.
Indian Government’s Initiative On LED Lights
Over the last few years, LED lights have proven themselves as a major source of lighting. They rapidly acquired importance within the Indian lighting sector because of their multiple benefits over traditional lighting technology. Although the Indian LED lighting business is in its infancy, it promises an infinite number of development prospects over the following several decades. India, being one of the biggest lighting markets, provides a profitable opportunity for LED manufacturers to ascertain operations within the area. The LED sector benefits from a sustainable environment thanks to skilled workers, easy doing business, and demographic advantages.
Manufacturers of LED lights are looking to benefit from the chance arising out of the new government’s initiative to push the usage of the energy-saving bulbs and said they expect the arena to touch a size of Rs 20,000 crore by 2020. Consistent with the Electrical Lamp and Component Manufacturers Association (ELCOMA), the government’s initiative could help propel the industry to grow five-fold in five years from its current size of Rs 4,000 crore.
According to Bista, this government has taken steps to scale back energy consumption at 13 percent within the lighting segment by 2019 of the full generation, which is at the present pegged at 18 percent, amounting to 1,900,00 MW. The corporation has manufacturing units at Neemrana in Rajasthan and sells LED lights in India under the brand Havells and Sylvania in the European geographical region.
India’s government authorized a production-linked incentive (PLI) plan for white products – air conditioners and LED lights – in April 2021, with a budgeted allocation of Rs 6,238 crore.
India contains a massive potential opportunity for the adoption of LED lighting solutions over the subsequent five to 10 years. Additionally, India is anticipated to accumulate a competitive advantage over China as labor costs rise in China and therefore the Chinese currency, The Yuan, strengthens against the Indian rupee, making India’s LED industry one among the fastest expanding marketplaces within the world. Consumer awareness of energy-efficient and environmentally friendly goods that are in keeping with the broader trend of up-to-date lighting and digitalization will end in a paradigm change in India’s electrical and electronic industries.
– Amrin Ahmed