21,000-plus jobs at risk ...: India's oldest electronics industry body sends 'urgent SOS' to government on these Chinese restrictions

Time of India

4 hours ago

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More than 21,000 jobs in India's audio electronics industry are threatened due to China's curbs on rare earth metal exports, according to the Electronic Industries Association of India (ELCINA). According to a report by PTI, India's oldest electronics body
ELCINA
has raised an urgent alarm over restrictions imposed by Beijing on rare earth metal, particularly on elements like terbium and dysprosium, have disrupted global supply chains, severely impacting India's burgeoning hearables and wearables sector.
In April, China introduced stringent export licensing for rare earth elements critical for producing high-performance NdFeB (Neodymium-Iron-Boron) magnets used in consumer electronics. ELCINA highlighted that this has forced Indian device makers to import fully assembled speaker modules from China, reversing progress in local component manufacturing. "This creates a regressive trend—from component manufacturing back to dependency on finished good imports. Over 5,000-6,000 direct jobs and 15,000 indirect jobs are at risk, particularly in Noida and South India," ELCINA stated in a report submitted to the government.
The industry body noted that
NdFeB magnets
, which constitute 5-7% of the bill of materials for audio electronics, are almost entirely imported, with China supplying 90% of India's requirements. Tightened supply and administrative bottlenecks have driven up prices of Chinese magnets, while alternative sources like Japan, the EU, and the US are 2-3 times costlier and lack sufficient capacity to meet India's growing demand.
ELCINA has called for urgent government action, including government-to-government dialogue with China, industry-specific exemptions akin to those in semiconductor trade, and increased investment in local R&D and manufacturing of rare earth magnets under the electronics component manufacturing scheme. The body also proposed a production-linked incentive scheme for critical minerals to bolster domestic capabilities.
The disruption underscores India's heavy reliance on imported rare earths and the need for strategic measures to safeguard its electronics manufacturing ecosystem, ELCINA warned.
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