When simulating this circuit in Proteus, I expect the LED to light up when the switch is closed, but it does not light up. What am I doing wrong?
I don't understand if this is a physical circuit or a simulation.
For starters, you're supplying a relatively low current to the LED, about 7mA. I suspect this is too low, but also that you should see it glow dimly when on.
The circuit should work, so the possibilities are
1) a bad component (FET, LED),
2) a wiring mistake, or
3) a wrong value resistor (1M instead of 1k for R2 for example.)
A small LED should show some emission with 5-10mA, but maybe your LED needs more current to glow brightly.