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Time of India
4 hours ago
- Business
- Time of India
Electronics makers hit by gold compound import curbs after China rare earth squeeze
By Prasoon Srivastava India's electronics manufacturing sector , which has been struggling with China's restrictions on rare earth magnet exports, faces a double whammy with import curbs on gold compound -- a key raw material. Rare earth magnets have diverse utility ranging from computer chips and electronic components to electric vehicles, wind turbines, and medical equipment. Gold compounds are also widely used in critical electronic components to improve flow of electric current in motherboards, semiconductors etc. The Directorate General of Foreign Trade (DGFT) in an order dated June 17 reclassified imports of colloidal precious metals and compounds from "free" to "restricted" category. The development followed restrictions from China on export of rare earth magnets and specialised capital goods. India Cellular and Electronics Association (ICEA) in a letter to the Ministry of Electronics and IT said that the import restriction has brought in uncertainty in the efforts of industry to scale up domestic electronics manufacturing . "The recent import restriction has affected the availability of this critical material. This has introduced uncertainty in light of ongoing efforts to scale up electronics manufacturing. The resulting policy unpredictability may also deter investment in critical sub-assembly segments where these inputs are essential," ICEA Chairman Pankaj Mohindroo said. While demanding measures to resolve the import of gold compounds, Mohindroo said the Electronics Component Manufacturing Scheme (ECMS) aims to localise key components such as printed circuit boards, camera modules, mechanical parts and connectors -- all of which require a gold based plating materials as part of the manufacturing process. Electronic component makers body Elcina in a letter to the Ministry of Electronics and IT said that customs authorities have begun holding consignments of Potassium Gold Cyanide (GPC) and similar materials, resulting in significant delays to production lines and disruption to supply chains in the electronics manufacturing sector. Elcina Secretary General Rajoo Goel said that Potassium Gold Cyanide, colloidal precious metals, and other compounds are used as critical raw materials in the manufacturing of electronic components, including connectors, high-end PCBs and semiconductors, among others. "These inputs are imported on an actual user basis and consumed entirely within the manufacturing process. They do not enter the bullion trade or precious metal markets. Their import is critical for captive consumption by electronics manufacturers and involves their usage in miniscule quantities (trace usage) in finished goods," he said. Elcina has said that import restriction will adversely impact the ease of doing business for electronic components manufacturers and ' Make in India ' to achieve the goals of the government's flagship schemes like ECMS, PLI and SPECS. In April 2024, China implemented strict export licensing on rare earth elements like terbium and dysprosium -- key inputs for high level performance NdFeB (Neodymium-Iron-Boron) magnets used in consumer electronics. Elcina estimates that over 21,000 jobs are at risk in Noida and South India in the country's audio electronics segment due to restrictions imposed by China on export of rare earth metals. Electronics manufacturing services companies are also facing problems in importing capital goods from China which is delaying their production. Recently, iPhone maker Foxconn had to send back hundreds of Chinese technology professionals who were helping the company's India unit in expansion of manufacturing capacity and training professionals for handling machines.
Mint
21 hours ago
- Business
- Mint
Indian electronics manufacturers face double whammy with import curb on gold compounds
New Delhi, Jul 6 (PTI) India's electronics manufacturing sector, which has been struggling with China's restrictions on rare earth magnet exports, faces a double whammy with import curbs on gold compound -- a key raw material. Rare earth magnets have diverse utility ranging from computer chips and electronic components to electric vehicles, wind turbines, and medical equipment. Gold compounds are also widely used in critical electronic components to improve flow of electric current in motherboards, semiconductors etc. The Directorate General of Foreign Trade (DGFT) in an order dated June 17 reclassified imports of colloidal precious metals and compounds from "free" to "restricted" category. The development followed restrictions from China on export of rare earth magnets and specialized capital goods. India Cellular and Electronics Association (ICEA) in a letter to the Ministry of Electronics and IT said that the import restriction has brought in uncertainty in the efforts of industry to scale up domestic electronics manufacturing. "The recent import restriction has affected the availability of this critical material. This has introduced uncertainty in light of ongoing efforts to scale up electronics manufacturing. The resulting policy unpredictability may also deter investment in critical sub-assembly segments where these inputs are essential," ICEA Chairman Pankaj Mohindroo said. While demanding measures to resolve the import of gold compounds, Mohindroo said the Electronics Component Manufacturing Scheme (ECMS) aims to localise key components such as printed circuit boards, camera modules, mechanical parts and connectors -- all of which require a gold based plating materials as part of the manufacturing process. Electronic component makers body Elcina in a letter to the Ministry of Electronics and IT said that customs authorities have begun holding consignments of Potassium Gold Cyanide (GPC) and similar materials, resulting in significant delays to production lines and disruption to supply chains in the electronics manufacturing sector. Elcina Secretary General Rajoo Goel said that Potassium Gold Cyanide, colloidal precious metals, and other compounds are used as critical raw materials in the manufacturing of electronic components, including connectors, high-end PCBs and semiconductors, among others. "These inputs are imported on an actual user basis and consumed entirely within the manufacturing process. They do not enter the bullion trade or precious metal markets. Their import is critical for captive consumption by electronics manufacturers and involves their usage in miniscule quantities (trace usage) in finished goods," he said. Elcina has said that import restriction will adversely impact the ease of doing business for electronic components manufacturers and 'Make in India' to achieve the goals of the government's flagship schemes like ECMS, PLI and SPECS. In April 2024, China implemented strict export licensing on rare earth elements like terbium and dysprosium -- key inputs for high level performance NdFeB (Neodymium-Iron-Boron) magnets used in consumer electronics. Elcina estimates that over 21,000 jobs are at risk in Noida and South India in the country's audio electronics segment due to restrictions imposed by China on export of rare earth metals. Electronics manufacturing services companies are also facing problems in importing capital goods from China which is delaying their production. Recently, iPhone maker Foxconn had to send back hundreds of Chinese technology professionals who were helping the company's India unit in expansion of manufacturing capacity and training professionals for handling machines.
Economic Times
a day ago
- Business
- Economic Times
Electronics makers hit by gold compound import curbs after China rare earth squeeze
TIL Creatives AI generated image for representation purposes. India's electronics manufacturing sector, which has been struggling with China's restrictions on rare earth magnet exports, faces a double whammy with import curbs on gold compound -- a key raw material. Rare earth magnets have diverse utility ranging from computer chips and electronic components to electric vehicles, wind turbines, and medical equipment. Gold compounds are also widely used in critical electronic components to improve flow of electric current in motherboards, semiconductors etc. The Directorate General of Foreign Trade (DGFT) in an order dated June 17 reclassified imports of colloidal precious metals and compounds from "free" to "restricted" category. The development followed restrictions from China on export of rare earth magnets and specialised capital goods. India Cellular and Electronics Association (ICEA) in a letter to the Ministry of Electronics and IT said that the import restriction has brought in uncertainty in the efforts of industry to scale up domestic electronics manufacturing. "The recent import restriction has affected the availability of this critical material. This has introduced uncertainty in light of ongoing efforts to scale up electronics manufacturing. The resulting policy unpredictability may also deter investment in critical sub-assembly segments where these inputs are essential," ICEA Chairman Pankaj Mohindroo said. While demanding measures to resolve the import of gold compounds, Mohindroo said the Electronics Component Manufacturing Scheme (ECMS) aims to localise key components such as printed circuit boards, camera modules, mechanical parts and connectors -- all of which require a gold based plating materials as part of the manufacturing process. Electronic component makers body Elcina in a letter to the Ministry of Electronics and IT said that customs authorities have begun holding consignments of Potassium Gold Cyanide (GPC) and similar materials, resulting in significant delays to production lines and disruption to supply chains in the electronics manufacturing sector. Elcina Secretary General Rajoo Goel said that Potassium Gold Cyanide, colloidal precious metals, and other compounds are used as critical raw materials in the manufacturing of electronic components, including connectors, high-end PCBs and semiconductors, among others. "These inputs are imported on an actual user basis and consumed entirely within the manufacturing process. They do not enter the bullion trade or precious metal markets. Their import is critical for captive consumption by electronics manufacturers and involves their usage in miniscule quantities (trace usage) in finished goods," he said. Elcina has said that import restriction will adversely impact the ease of doing business for electronic components manufacturers and 'Make in India' to achieve the goals of the government's flagship schemes like ECMS, PLI and SPECS. In April 2024, China implemented strict export licensing on rare earth elements like terbium and dysprosium -- key inputs for high level performance NdFeB (Neodymium-Iron-Boron) magnets used in consumer electronics. Elcina estimates that over 21,000 jobs are at risk in Noida and South India in the country's audio electronics segment due to restrictions imposed by China on export of rare earth metals. Electronics manufacturing services companies are also facing problems in importing capital goods from China which is delaying their production. Recently, iPhone maker Foxconn had to send back hundreds of Chinese technology professionals who were helping the company's India unit in expansion of manufacturing capacity and training professionals for handling machines.
Time of India
a day ago
- Business
- Time of India
Manufacturing setback: India's electronics sector faces twin blow from import curbs on gold compounds, rare earths; industry warns of supply disruption
This is an AI-generated image, used for representational purposes only. India's electronics manufacturing industry is grappling with mounting pressure as recent restrictions on gold compound imports have compounded the sector's ongoing struggle with China's export curbs on rare earth magnets. As per news agency PTI, industry groups have warned that the dual hit could disrupt production lines, delay investments, and weaken India's push for electronics self-reliance under schemes like Make in India and PLI. Gold compounds, especially Potassium Gold Cyanide, are essential in manufacturing high-end electronic components such as semiconductors, printed circuit boards, and connectors, due to their superior conductivity. However, the Directorate General of Foreign Trade (DGFT), in a June 17 order, moved these imports from the 'free' to the 'restricted' category. According to the India Cellular and Electronics Association (ICEA), the sudden policy shift has caused 'uncertainty in ongoing efforts to scale up electronics manufacturing,' especially in sub-assemblies that rely on gold-based plating materials. 'This unpredictability could deter investment,' ICEA chairman Pankaj Mohindroo warned in a letter to the ministry of electronics and IT, reported news agency PTI. Echoing these concerns, Elcina secretary general Rajoo Goel said customs authorities have begun holding consignments of gold-based compounds, resulting in 'significant delays to production lines.' He emphasised that these materials are used strictly for manufacturing, not bullion trading, and in trace amounts only. Elcina cautioned that such import hurdles threaten the objectives of the Electronics Component Manufacturing Scheme (ECMS), PLI, and SPECS. 'The import restriction will adversely impact the ease of doing business for component manufacturers,' the body said. This challenge comes on top of China's export curbs on rare earth elements like terbium and dysprosium, key for manufacturing NdFeB magnets used in electronics, EVs, and wind turbines. As per PTI, over 21,000 jobs are at risk in Noida and South India's audio electronics segment alone due to these restrictions. Moreover, electronics firms face delays in importing specialised capital goods from China, with companies like iPhone-maker Foxconn recently forced to withdraw Chinese engineers from its Tamil Nadu facility, affecting production schedules. According to the Global Trade Research Initiative (GTRI), China's export restrictions now extend to gallium, germanium, graphite, and other critical minerals. GTRI founder Ajay Srivastava said these moves expose India's deep strategic vulnerabilities and urged the government to launch reverse-engineering initiatives to cut reliance on Chinese inputs. 'India must act swiftly to reduce Chinese import dependence,' Srivastava said, calling for industrial labs to develop local substitutes for top imported products. With imports from China rising and exports falling, India's trade deficit with Beijing has widened to $100 billion in FY25. Over 80 per cent of India's needs in laptops, solar panels, antibiotics, and lithium-ion batteries continue to be met by Chinese firms. As the sector calls for urgent government intervention, the electronics industry warns that unless bottlenecks around raw materials and capital goods are cleared, India's ambitions of becoming a global electronics manufacturing hub could face serious setbacks. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
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Business Standard
a day ago
- Business
- Business Standard
Electronics makers face fresh blow from import curb on gold compounds
India's electronics manufacturing sector, which has been struggling with China's restrictions on rare earth magnet exports, faces a double whammy with import curbs on gold compound -- a key raw material. Rare earth magnets have diverse utility ranging from computer chips and electronic components to electric vehicles, wind turbines, and medical equipment. Gold compounds are also widely used in critical electronic components to improve flow of electric current in motherboards, semiconductors etc. The Directorate General of Foreign Trade (DGFT) in an order dated June 17 reclassified imports of colloidal precious metals and compounds from "free" to "restricted" category. The development followed restrictions from China on export of rare earth magnets and specialized capital goods. India Cellular and Electronics Association (ICEA) in a letter to the Ministry of Electronics and IT said that the import restriction has brought in uncertainty in the efforts of industry to scale up domestic electronics manufacturing. "The recent import restriction has affected the availability of this critical material. This has introduced uncertainty in light of ongoing efforts to scale up electronics manufacturing. The resulting policy unpredictability may also deter investment in critical sub-assembly segments where these inputs are essential," ICEA Chairman Pankaj Mohindroo said. While demanding measures to resolve the import of gold compounds, Mohindroo said the Electronics Component Manufacturing Scheme (ECMS) aims to localise key components such as printed circuit boards, camera modules, mechanical parts and connectors -- all of which require a gold based plating materials as part of the manufacturing process. Electronic component makers body Elcina in a letter to the Ministry of Electronics and IT said that customs authorities have begun holding consignments of Potassium Gold Cyanide (GPC) and similar materials, resulting in significant delays to production lines and disruption to supply chains in the electronics manufacturing sector. Elcina Secretary General Rajoo Goel said that Potassium Gold Cyanide, colloidal precious metals, and other compounds are used as critical raw materials in the manufacturing of electronic components, including connectors, high-end PCBs and semiconductors, among others. "These inputs are imported on an actual user basis and consumed entirely within the manufacturing process. They do not enter the bullion trade or precious metal markets. Their import is critical for captive consumption by electronics manufacturers and involves their usage in miniscule quantities (trace usage) in finished goods," he said. Elcina has said that import restriction will adversely impact the ease of doing business for electronic components manufacturers and 'Make in India' to achieve the goals of the government's flagship schemes like ECMS, PLI and SPECS. In April 2024, China implemented strict export licensing on rare earth elements like terbium and dysprosium -- key inputs for high level performance NdFeB (Neodymium-Iron-Boron) magnets used in consumer electronics. Elcina estimates that over 21,000 jobs are at risk in Noida and South India in the country's audio electronics segment due to restrictions imposed by China on export of rare earth metals. Electronics manufacturing services companies are also facing problems in importing capital goods from China which is delaying their production. Recently, iPhone maker Foxconn had to send back hundreds of Chinese technology professionals who were helping the company's India unit in expansion of manufacturing capacity and training professionals for handling machines.
