One move by China and 21000 Indians may lose jobs! these sectors at risk due to…
In April, China introduced restrictions on export licensing requirements for rare earth elements like terbium and dysprosium, critical components for manufacturing high-performance NdFeB (Neodymium-Iron-Boron) magnets used in consumer electronics.
The country's oldest electronics industry body said that the move has disrupted global supply chains, hitting India's fast-growing hearables and wearables sector hard and the device makers are switching to import fully assembled speaker modules from China.
'This creates a regressive trend-from component manufacturing back to finished good imports dependency. Over 5,000-6,000 direct jobs and 15,000 indirect jobs are at risk in speaker and audio component manufacturing especially in Noida and South India,' Elcina stated in the report.
Elcina estimates that the rare earth metal-based magnets account for around 5-7 per cent of the bill of materials and India imports nearly 100 per cent of its NdFeB magnet requirement with China accounting for 90 per cent of the total imports.
The industry body said that prices of China-origin magnets have increased due to tightened supply and administrative bootlenecks and other sources such as Japan, EU and the US are 2-3 times more expensive and also lack sufficient capacity to meet India's rising demand.
Electronics manufacturing services firm Videotex, which produces televisions, said rare earth-based magnets are critical in TV manufacturing, particularly for speakers, due to their superior performance and compact size.
'As the country remains heavily reliant on imports for these components, this presents a clear challenge. However, the specific impact on the television manufacturing segment is expected to be relatively limited. We are working closely with our suppliers to ensure adequate stock for the upcoming season, thereby maintaining production continuity,' Videotex Director Arjun Bajaj said.
Videotex makes TVs for Havels (Lloyd), Reliance Group (BPL & Reconnect), Vijay Sales, Toshiba and over 25 other brands.
'Additionally, based on supplier guidance, we are actively exploring alternative solutions such as ferrite magnets, which offer reasonable performance trade-offs. While the disruption is significant, it also underscores the importance of long-term strategies to localise and diversify our component sourcing,' Bajaj said.
Elcina has urged the government to initiate government-to-government (G2G) dialogue with China, explore industry-specific exemptions similar to those seen in semiconductor trade channels, boost local research and development and manufacturing of rare earth magnets under the electronics component manufacturing scheme.
The industry body has recommended government explore the possibility of rolling out a production-linked incentive scheme for critical minerals.
(With inputs from PTI)
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