I'd replace that indicator and check the connections. I'll have to get my schematic out...but I'm pretty sure the GP circuit runs through the indicator.The indicator reads 0.78v during preheat, 0v otherwise. It does not ever glow, did preheat for 25 seconds to verify.
One side is wired directly to the key switch to the pin that says Gr or G1 maybe, it's hard to see. It's a black wire with a red stripe. The other side is grounded.
So if it is burned out the glow plugs wouldn't work or if there is too much voltage loss through it (for any reason) the glow plugs would not heat up properly.