India LED Industry Has Broad Prospects

The Indian LED Expo was held in New Delhi from November 30 to December 2. Apart from India, 370 manufacturers from 11 countries or regions participated in the exhibition. Six manufacturers from China and Taiwan, including Lanya Optics, Reddick Optics, Mingwei Enterprises, Shangze Futon Technologies and Adison Optics, participated in the exhibition. Indian government intends to promote the LED industry, due to internal and export demand, the future market size is expected to continue to expand.

Chinese Taiwanese manufacturers, including Adison optoelectronics and Reddick optics, which manufacture and sell LED bulbs, lamp boards and optical lenses and other components, as well as bright-weft companies that provide power system solutions, have entered the Indian market for eight to 10 years. These three manufacturers also participated in the Indian LED Expo last year.

At present, the LED lighting market in India is still in its infancy. International manufacturers are optimistic about India. Philips Lighting and Osram have set up factories in India as production bases in the global market.

According to the LED inside report, the Indian LED lighting market in 2016 was $1.14 billion, with an annual growth rate of 47.1%, and is expected to climb to $1.715 billion by 2020.

In 2016, Indian Prime Minister Modi proposed a "smart city plan" to build 30 million streetlights across India within two years, including the replacement of old and new streetlights. LED factory Yiguang has recently succeeded in taking down the southern Indian street lamp logo and will ship more than 100,000 street lamps in the next year.

India's new commodity and service tax (GST) system came into operation in July this year, with a unified tax rate of 5%, 12%, 18%, 28% and other four different rates, eliminating cross-provincial exchange rate differences. But affected by GST, the growth of LED market is slowing down this year.

Many foreign businessmen, including Taiwanese businessmen, are still exploring the new tax system. In the short run, market prices will fluctuate under the impact of the new tax system. However, KPMG estimates that the new GST system in the long run appears to be favorable for Taiwanese businessmen to enter the Indian market, the price is more flexible, and it is more profitable for Taiwanese businessmen.