As the Diwali season approaches, there is a noticeable shift in consumer preference toward ‘Made in India’ products, reducing reliance on imported goods, particularly from China. This trend, which started in recent years, has grown stronger with consumers now opting for local items across various categories, from decorative lights to traditional gifts.
Rise of Indian-Made Festive Products
On Diwali, traditionally dominated by imported decorative lights, the market has seen an uptick in Indian-made lights and festive items. Unlike cheaper Chinese lights, locally made options are favoured for their durability, unique designs, and support of Indian artisans. Items like LED diyas, chandeliers, and temple lights have become popular, with Indian brands introducing high-quality, innovative alternatives.
Impact on Chinese Goods and the Growing Local Market
The push for local products has impacted sales of Chinese goods in India, with the Confederation of All India Traders (CAIT) reporting a decline of over ₹1 lakh crore in demand for Chinese items last Diwali. Previously occupying around 70% of the market, Chinese products have seen a reduction as Indian-made options gain popularity and customer loyalty strengthens for domestic brands.
Long-Term Goal: Reducing Dependence on Imports
India’s efforts to build a robust local manufacturing ecosystem support the push for ‘Made in India’ goods. While imports from China, especially in raw materials and components, remain significant, the long-term goal is to establish a self-sufficient supply chain, reducing the need for intermediate goods. Diwali’s growing emphasis on locally made products represents a promising step in this direction.
