Twenty lighting product manufacturers in Guangdong plan invest in a light-emitting diode or LED industrial park in India.
The idea is to tap the vast market potential and lower costs in the populous South Asian country.
Led by the Guangdong Solid State Lighting Industry Innovation Center, the group of manufacturers is talking with several states in India for the project.
Two states have already held talks: Gujarat, the home state of Indian Prime Minister Narendra Modi, and Rajasthan, both in western India. The agreement on the project is expected to be signed in the first half of next year.
The proposed project is estimated to generate annual output of $596.88 million, said Gui Shirong, director of the center.
Total investment for the planned park is estimated at $2.98 billion, half of which would come from the participating enterprises. The rest is expected to be in the form of low-interest loans and support via advance purchase orders, Gui said.
The Chinese enterprises involved include those engaged in the manufacture of LED-based displays, road lamps, and household and commercial lighting products, chip packaging, and supporting industries.
The proposed Chinese LED park in India is expected to help advance LED industrialization, upgrade the LED technology and popularize LED lighting products in the country, and create an industrial cluster in the state where the park would be eventually located.
It is also estimated to create about 10,000 local jobs.
By Baishakhi Dutta
