Indian LED lighting market: new tipping point"

With the LED lighting applications mature and emerging markets to accelerate the introduction of LED lighting. The emerging market is a "new world" of domestic LED export companies targeting, and emerging markets in India, as the world's second most populous country, its economic growth and market size should not be underestimated.

Due to the current India manufacturing level is not high, the overall level of the LED lighting products on the market is relatively low, compared with a higher threshold for European and North American markets, the domestic enterprises to the India market is likely to enter the ranks of high-end products. Use in India the government is planning to encourage the promotion of LED products, industry experts believe that the future of the LED market in India may be even greater than the annual growth rate of 40%, has become a new position for the domestic LED enterprises to actively "rushing".

In addition, India has no unified price, the city states have their own rules, generally take ladder electricity charge, more electricity charge is greatly increased. Due to the high proportion of India power supply privatization, private power companies are not willing to make the rural rural power supply, power shortage situation is very serious. The slums of India known to the world, its scale is silent spread, quietly eating the city. The municipal authorities if cable maintenance, the erection of high voltage lines, will face the slum demolition. Although these slum in the bottom of society, but holding that politicians fear of the "imperial sword", that is the ballot. In every election in India or in the local elections, voters have a huge number of slums is any politicians dare to ignore the strong political power. India's politicians caution on the demolition, demolitions of events rarely happen. The result is that most of the city of India municipal construction almost stalled, damaged roads, power facilities, a serious aging problem.

It is because of the Indian infrastructure, city level low, seriously restricting the development of all aspects of the country, these problems need to be solved. So the development in India. These will be the focus of the project, these areas will be a huge cake, has a very large market potential, while the India national lighting products nearly 80% from Chinese, China in India regardless of reputation or sales channels have certain advantages. In April 2, 2014, the international semiconductor lighting Alliance (ISA) in Germany Frankfurt held global semiconductor lighting city application seminar "valley. Mr. Agger pointed out that India's lighting power consumption accounted for the country's electricity consumption 20%, LED lighting market will reach $470 million in 2015, and the street lamp will make 60%. LED lighting are the largest user of government, commercial and industrial circles. The civilian market because the price is relatively expensive, and the lack of public understanding of India LED lighting, low recognition, LED lighting civilian demand is not great.

India official issued a July 9th economic report, 2014-2015 fiscal year, India's economic growth rate was 5.4%-5.9%, and the India power grid for the first time the introduction of foreign capital, the development of large-scale power transmission project. Standard Chartered private equity investment plans for India's industrial street grid infrastructure business street Power Grid Corp to invest 5 billion rupees (about 520 million yuan), which is the first foreign investment in India power grid. Streator Power Grid Corp is mainly engaged in the development and operation of power transmission project, will be issued a convertible securities for the bank's private equity investment, the funds will be used for new and existing power transmission project, to provide more optimized, more advanced power transmission solutions for Telecom and power industry.

At present, India has a population of about 300 million people to enjoy the benefits of power grid, due to the lack of local India core technology, LED lamps mainly dependent on imports, compared with the traditional lamp, LED lamp is very expensive. Therefore, India LED lighting is mainly outdoor use, with the economic development of India, improve the power supply coverage, the civilian market will be a substantial surge in demand.

Reporters in the Taobao search on the website of LED lighting, low-cost civil lighting LED lighting has been very hot, the volume is considerable, and the price of 1.5~2 yuan shipping accounted for the majority, OPPLE lighting in the high-end is between 25~30 yuan. The price advantage and brand image is the impact of the India lighting market competition the main factors. India electric power distribution is not balanced, the coverage rate is low, the supply can not satisfy the demand, some in the city of India, only a few rich people can use to supply electricity, but only three or four hours, many poor people still use lantern. The so-called "cut", only to increase yield, reduce consumption in order to make rational use of power resources in India, let people's living standard has improved. Energy-saving lighting technology and requires the development of alternative technology has become increasingly important. India's general election, the new prime minister Modi promised in 2019 before the household at least can install a bulb. This is an increase of LED lighting in the civilian market confidence in the application.

In order to promote the development of LED industry, the India government resorted to two measures, one of which is the LED chip factory (FAB) into MSIPS (Modified Special Incentive award Package Scheme), 2 were eligible to refund subsidies industry cost, but the initial investment of not less than 50 million dollars, domestic manufacturers and foreign are applicable, the objective is to encourage in India, the local establishment of semiconductor fab.

In addition, according to the official preferential market access policy, government procurement will provide 5 number for the LED related products manufacturers (must enhance product value 50%) but in the bidding price and specifications of no special preferential. The purpose is to let the local manufacturing LED factory to enter the local market.

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