The Indian government rolled out a massive green policy on Oct. 2014 to replace the India’s 750 million tungsten bulbs with LED bulbs. According to a report, it will be Chinese companies that will acquire the nearly $3.78 billion worth of LED orders in the Indian market, due to domestic companies limited supply and lack of finances to meet this demand.
Industry sources claim LED bulb orders in India could reach as high as 2 billion bulbs, and with each bulb selling at an average of Rs 120, the business could eventually reach INR 240 billion. This goes against the Prime Minister's 'Make in India' initiative.
Even bigger LED players in the Indian market didn’t have required manufacturing capacity, and are importing bulbs straight from China. This disrupts the entire value chain for small players, adding domestic companies need about half a year to scale up production capacities.
However, the tendering process is open to all and does not discriminate between small and big enterprises. Even retailers are getting impacted. It is not the government's business to distribute these items at people's homes.