First of all, LEDs were difficult to sell in India, and it was hard to convince consumers that LED lights had a long lifetime that could repay their investments. In countries with low purchase power, economics are always most important. The LED sector in India remained small throughout 2011-2012, and the market value at the time closed to US$100 million or maybe even less.
Besides, India doesn’t have a semiconductor industry at all till this date. As a result, the packaging industry has not prospered in the country, and it lacks semiconductor testing or piloting facilities. Although, the country does have a small SMPS and electronic manufacturing industry, the government did not prioritize the electronic industry for some time. However, this has changed in the last 3 years.
One of the major drivers behind this change, was lots of electronic products the country was importing. India is projected to import $400 billion worth of electronics by 2019. This really made the Indian government rethink its electronic manufacturing strategy, and it began to initiate incentives to spur LED and electronic manufacturing industry forward.
Although, thelamp manufacturing industry was well established in India, it didn't warm up to LEDs at first. Most of the lamp industry’s revenue was coming from CFL sales, so they didn’t warm up to the industry at first. No one is going to like one of the major revenue components is going to decline. Yet, the shift from CFL to LED lights has been inevitable in the Indian market. It appears in India, people have finally accepted this paradigm shift of CFL to LED lights.