The Diwali Lights That Expose India’s Manufacturing Challenge: A Tale of Two Supply Chains
As Diwali 2025 illuminates homes and streets across India, a deeper story hides beneath the bright sparkle of string lights. Every strand of LED “ladi” — the colourful decorative lights that bring joy to the festival of lights — also tells a tale about India’s ongoing industrial struggle and its heavy dependence on Chinese imports.
A Visit to the Market
At a hardware shop in South Delhi, the shelves were stacked with two distinct types of Diwali string lights. One, a 10-metre “Made in China” variant, shimmered in rainbow colours and cost about ₹95 to ₹110. Right beside it was a locally manufactured version — proudly stamped “Made in India” — priced at nearly ₹220. The Indian lights looked sturdier and brighter, yet the difference lay in something less visible but more important: compatibility.
When the buyer tried to connect the Indian lights to the usual power jointer, it simply didn’t fit. The shopkeeper shrugged and offered a common solution — a quick “jugaad” using an improvised connector to make it work. The irony was clear: while India had succeeded in making a high-quality light strand, it had failed to design it in harmony with the rest of the ecosystem — an ecosystem still dominated by Chinese standards and components.
The Manufacturing Gap
This small anecdote captures a much bigger issue in India’s manufacturing landscape. China doesn’t just export finished products; it exports complete ecosystems. From the LED bulbs to the wires, connectors, plugs, and even packaging, everything is produced within an integrated supply chain. In contrast, Indian manufacturers often produce just one component, importing the rest from abroad.
In 2022, China exported nearly US$710 million worth of LED lighting products to India in just the first half of the year — a 27% increase from the year before. By 2023-24, India’s total imports of electronic, telecom, and electrical products had reached nearly US$89.8 billion, with China alone accounting for over half that figure. Despite government calls for “Atmanirbhar Bharat” and “Make in India,” the numbers reveal a different reality.
Why the Disconnect Exists
India’s manufacturing base has grown rapidly in sectors like automobiles, defense, and mobile phones, but smaller electronics — especially in consumer and festival categories — still rely heavily on foreign imports. The challenge isn’t just about price; it’s about systems thinking.
Chinese companies have mastered the art of vertical integration — designing products where every component, from the plug to the packaging, aligns with global and domestic standards. In India, manufacturing remains fragmented. Small-scale producers or MSMEs (Micro, Small & Medium Enterprises) struggle with financing, logistics, and technology adoption. Red tape and lack of coordination between suppliers further weaken the chain.
The South Delhi shop example reveals a basic design flaw: the Indian product lacked a compatible plug because the ecosystem to produce or supply such connectors domestically simply doesn’t exist. When even basic components are imported, the concept of “Swadeshi” loses practical meaning.
Price vs. Performance
Consumers face a familiar dilemma. Should they pay double for a “Made in India” product that might not work seamlessly? In a price-sensitive market like India, most buyers choose affordability and convenience — which almost always means buying Chinese-made goods.
It’s not that Indian lights are inferior in quality. In fact, they often use better materials and brighter LEDs. The problem is that they’re not complete products. Without compatible accessories, the consumer experience is poor, driving customers back toward cheaper imports.
The Bigger Economic Picture
India’s dependence on Chinese goods extends beyond decorative lights. The same imbalance runs through sectors like solar panels, mobile components, and electric vehicles. Every festive season, imports surge, benefiting foreign manufacturers while Indian factories run below capacity.
Despite significant investment in the Production Linked Incentive (PLI) scheme and policies promoting domestic assembly, India’s value addition remains modest. A major reason is the absence of domestic component manufacturing — the “nuts and bolts” of the supply chain.
Until these smaller but vital industries thrive, Indian manufacturers will continue to rely on imported circuits, connectors, and chips. The result: even “Made in India” products often contain a majority of imported parts.
MSMEs and the Missing Middle
India’s MSME sector — which should form the backbone of domestic manufacturing — faces daunting barriers. Access to capital remains limited, energy costs are high, and raw materials are expensive. Moreover, there is little standardisation across the industry.
Unlike China, where small factories collaborate within regional clusters, Indian MSMEs often operate in isolation. This prevents them from scaling up and producing components in sync with larger manufacturers. The lack of technical training and design standardisation widens the gap further.
The Swadeshi Paradox
Calls to “Buy Indian” resonate emotionally, especially during festivals like Diwali. But patriotism alone cannot sustain an industry. The “Swadeshi” movement of the modern era requires more than slogans — it demands reliable, competitive, and compatible Indian products.
As the article aptly puts it: “The call to Swadeshi only makes sense if there are matching Indian alternatives.” Simply rebranding imported products or assembling parts locally won’t achieve self-reliance. True manufacturing strength lies in creating end-to-end solutions that work seamlessly for the consumer.
Lighting the Way Forward
The humble Diwali light string has become a symbol of India’s industrial challenge. It highlights what’s missing — not just a plug or connector, but a cohesive, coordinated manufacturing vision. If India wants to shine with its own light, it must invest in its missing links: component ecosystems, design standardisation, and MSME integration.
Government initiatives like “Make in India,” “Atmanirbhar Bharat,” and PLI schemes are steps in the right direction. But they must go deeper — nurturing small suppliers, funding research, and promoting domestic standards that match or exceed global ones.
Until then, each twinkling Diwali light will remind us that beneath the glow of celebration lies a sobering reality — that India’s path to self-reliance still depends on parts stamped “Made in China.”
In essence, this story is not just about festive lights; it’s about illumination of another kind — a revelation of how interconnected supply chains define economic power. For India, true independence in manufacturing will arrive not when the slogan changes, but when the socket and the switch finally fit together — perfectly, and proudly, at home.
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