LED Lights is one of the fastest growing businesses in the world, and India is considered the second biggest consumer of these lights
The LED market is expected to grow by USD 25.78 billion during 2020-2024, according to Technavio. The LED market is driven by the declining manufacturing cost of LEDs.
“With the continuing spread of the coronavirus pandemic, organizations across the globe are gradually flattening their recessionary curve by leveraging technology. Many businesses will go through response, recovery, and renewal phases,” read the report.
It continued, “Building business resilience and enabling agility will aid organizations to move forward in their journey out of the COVID-19 crisis towards the Next Normal.”
In addition, the growing number of households and increasing urbanization are expected to trigger the LED market toward witnessing a CAGR of almost 13 per cent during the forecast period. LED Lights is one of the fastest growing businesses in the world, and India is considered the second biggest consumer of these lights.
LED PLI in India
The Indian LED lighting market, as per a report by IMARC, reached a value of US$2.87 billion in 2019. Department for Promotion of Industry and Internal Trade(DPIIT), Ministry of Commerce and Industry, Government of India has notified theProduction Linked Incentive (PLI) Scheme for White Goods (Air Conditioners and LED Lights) manufacturers in India. The objective of the scheme is to create complete component ecosystem in India and make India an integral part of the global supply chains.
The PLI Scheme will be implemented within the overall financial limits of Rs. 6,238 Crores (Six thousand two hundred thirty-eight Crore) over a period of 5 years during FY 2021-22 to FY 2028-29. The scheme promises to extend an incentive four to six per cent on incremental sales (net of taxes) over the base year of goods manufactured in India and covered under target segments, to eligible companies, for a period of five (5) years subsequent to the base year and one year of gestation period.
Data estimates are that around 50 million LED bulbs are produced in India every month in the organised sector, and production of around 20 million LED lamps takes place in the unorganised sector. But the opportunity ahead can be assessed from the fact that about 400 to 500 million conventional lamps are still being produced in India.
