Every October, India lights up like no other country on earth.
Streets sparkle, markets buzz, and homes gleam under strings of LEDs. It’s the season when the country feels alive.
But behind the glow, there’s a quiet irony most of us miss a huge part of that brightness comes from China.
From the fairy lights on your balcony to the tiny Ganesh idol on your table, about 70% of what you buy this Diwali is made in China.
And every purchase, every decoration, every shimmering bulb it all sends money flowing out of India and straight into Chinese factories.
Your festival of light, in short, has become China’s festival of profit.
The ₹1.2-Lakh-Crore Celebration
Diwali isn’t just a festival; it’s an economic wave.
Every year, Indians spend roughly ₹1.2 lakh crore on sweets, gifts, lights, clothes, and decorations.
That’s larger than the GDP of some small nations. But here’s the thing — a large slice of that festive money doesn’t circulate here. It crosses borders.
Imported LEDs, plastic idols, and flashy electronic décor have quietly replaced the local craft economy that once powered Diwali bazaars.
| Category | China’s Market Share in India | Import Value (2024) |
|---|---|---|
| Decorative LEDs & Lights | 70–75 % | ₹7,100 crore |
| Festive Décor & Signage | 93 % | ₹2,400 crore |
| Lamps & Light Fittings | — | ₹3,000 crore |
| Total (Lighting + Décor) | — | ₹13,000 crore ≈ USD 853 million |
That’s ₹13,000 crore leaving India every festive season enough to run the health budget of an entire Indian state for a year.
The Trade Deficit Nobody Talks About
This isn’t just a Diwali story. It’s part of a bigger economic pattern.
In FY 25, India imported goods worth USD 113.5 billion (≈ ₹9.45 lakh crore) from China.
We exported only USD 14.25 billion (≈ ₹1.19 lakh crore) in return.
That’s a trade deficit of USD 99 billion (₹8.25 lakh crore) the largest India has ever recorded with any single country.
To put it simply:
For every ₹100 we trade with China, ₹87 flows out.
| FY | Imports from China | Exports to China | Deficit |
|---|---|---|---|
| FY 20 | USD 65 B | USD 16 B | USD 49 B |
| FY 23 | USD 101 B | USD 15 B | USD 86 B |
| FY 25 | USD 113.5 B | USD 14.25 B | USD 99 B |
And each year, Diwali adds its small but glowing contribution to that imbalance.
How Festive Spending Became a Chinese Revenue Stream
In 2024, India imported USD 853 million (₹7,000 crore) worth of decorative items, signage, and lighting products from China.
That included ₹3,000 crore worth of lamps and light fittings alone.
Almost 93 % of all “festive or decorative articles” imported into India that year came from China.
That means almost everything twinkling in your home this week began its life in a Chinese factory.
| Product Type | Imports from China (2024) | China’s Share |
|---|---|---|
| Lamps & Light Fittings | ₹3,000 crore | 85 % |
| Festive Décor & Signage | ₹2,400 crore | 93 % |
| LEDs & Bulbs | ₹1,700 crore | 70 % |
| Total | ₹7,100 crore | ≈ 90 % |
For China, Diwali isn’t a festival it’s a quarterly revenue bump.
The Five-Year Surge We Pretended Not to See
In 2017, India imported USD 61 billion worth of goods from China.
Then came the 2020 border clashes, and #BoycottChinese trended everywhere.
You’d think that would change things.
But it didn’t.
By 2022, imports had jumped to USD 94.5 billion — up 63 % since 2017.
By FY 24, China made up 15 % of all Indian imports, the highest in our history.
| Year | Imports from China (USD Billion) | Change YoY |
|---|---|---|
| 2017 | 61 | — |
| 2020 | 58 | ↓ 5 % (Boycott calls) |
| 2022 | 94.5 | ↑ 63 % |
| 2024 | 101 | ↑ 7 % |
| 2025 | 113.5 | ↑ 12 % |
The hashtags faded. The shipments didn’t.
Why India Can’t Just “Make It Here” Yet
The obvious question why not just produce these things ourselves?
The answer is brutal economics.
Chinese factories can make the same decorative light for about ₹80, while in India it costs around ₹180–₹200.
That’s because Chinese producers enjoy scale, automation, integrated supply chains, and subsidised power.
India’s small manufacturers still rely on manual labour and fragmented logistics.
| Item | Cost in China | Cost in India | Difference |
|---|---|---|---|
| LED String Light | ₹80 | ₹180 | +125 % |
| Resin Idol | ₹150 | ₹280 | +87 % |
| Plastic Lantern | ₹100 | ₹190 | +90 % |
So when local manufacturers try to compete, they bleed.
Eventually, they stop producing and the import cycle deepens.
It’s not that India lacks talent; we lack systems efficient logistics, cheap power, and credit for small businesses.
The Local Fallout That Never Makes Headlines
Travel to Ayodhya, Jaipur, or Madurai in the weeks before Diwali, and you’ll hear the same story again and again.
Artisans who once made a living from clay diyas and handmade décor now sit idle.
Plastic and LEDs have replaced the earth and oil that once defined the festival.
Their incomes have fallen by half in a decade.
| Craft Sector | Avg Income (2015) | Now (2024) | Drop |
|---|---|---|---|
| Clay Diyas | ₹15,000 / month | ₹7,000 | −53 % |
| Small Idols | ₹18,000 | ₹9,500 | −47 % |
| Handicrafts & Décor | ₹20,000 | ₹10,000 | −50 % |
Every cheap bulb we buy replaces a family’s livelihood somewhere in rural India.
It’s not just economic — it’s cultural erosion.
These artisans don’t just make products; they make traditions tangible.
The Hidden Cost of Cheap Imports
We often tell ourselves “It’s cheaper, what’s the harm?”
Here’s the harm.
Every imported shipment widens our trade deficit, weakens the rupee, and eats into foreign-exchange reserves.
When local factories shut, we lose not just jobs but tax revenue and manufacturing capacity.
| Impact Area | Effect of Rising Imports |
|---|---|
| Trade Balance | Higher deficit (USD 99 B FY 25) |
| Employment | Loss of MSME & artisan jobs |
| Currency | Rupee under pressure |
| Fiscal Health | Lower manufacturing tax base |
Short-term gain, long-term drain.
The “Made in India” Mirage
Many products that look proudly Indian are, in truth, partly Chinese.
Those “Made in India” fairy lights? Often just assembled here.
The bulbs, chips, wiring all imported.
| Stage | Actual Origin |
|---|---|
| LED Chip | China |
| Wiring & Controller | China |
| Plastic Casing | China |
| Assembly & Packaging | India |
We’ve changed the sticker, not the supply chain.
What If We Kept the Money Home?
Now imagine this:
If even half of Diwali’s imported goods were made domestically, India could save over ₹20,000 crore every year.
That’s enough to:
- Support 50,000 MSMEs
- Create 10 lakh manufacturing jobs
- Or fund 200 small industrial clusters across Tier-2 and Tier-3 cities.
“Make in India” isn’t just patriotic — it’s profitable.
| Scenario | Annual Impact |
|---|---|
| 50 % Import Substitution | ₹20,000 crore saved |
| MSMEs Funded | ~50,000 |
| Jobs Created | ~10 lakh |
| Clusters Possible | 200+ |
Lighting the Way Forward
The answer isn’t boycotting or blaming.
It’s building.
China’s manufacturing dominance didn’t appear overnight. It took three decades of policy consistency, low-cost power, and relentless focus.
India can do the same but it needs coordination between government, industry, and consumers.
- Policy support for small manufacturers
- Incentives for domestic electronics and décor production
- Consumer awareness about spending choices
And at a personal level, it means buying local whenever you can.
Because every rupee you spend locally lights up not just your home, but someone else’s livelihood too.
The Bottom Line
When you switch on your Diwali lights this year, take a second look.
The glow might be from China but the power to change that lies with you.
If even a fraction of India’s festive spending stayed home, we could build factories, revive crafts, and create jobs all while keeping the spirit of Diwali intact.
The question isn’t “Can India make its own lights?”
It’s “Will we choose to?”
Because the truth is simple: Diwali should brighten India’s homes, not China’s economy.
Quick Snapshot: The Numbers Behind the Glow
| Metric | Value (2024–25) |
|---|---|
| Total Diwali Spending | ₹1.2 lakh crore |
| Imports from China (Festive Goods) | ₹13,000 crore |
| India–China Trade Deficit | USD 99 billion (₹8.25 lakh crore) |
| Share of Chinese Décor in Market | 70–93 % |
| Artisan Income Drop | 50–60 % |
| Potential Savings (if 50 % localised) | ₹20,000 crore |