China's Rare Earth Export Curbs Threaten Over 21,000 Jobs In India's Audio Electronics Sector

(MENAFN- KNN India) New Delhi, Jun 24 (KNN) More than 21,000 jobs in India's audio electronics industry are at risk due to China's recent restrictions on rare earth metal exports, the Electronic Industries Association of India (ELCINA) has warned.

According to a PTI report, the curbs have severely disrupted global supply chains and are impacting India's rapidly growing hearables and wearables market.

In April, China implemented strict export licensing requirements for rare earth elements like terbium and dysprosium-key inputs in producing high-performance NdFeB (Neodymium-Iron-Boron) magnets. These magnets are essential for consumer electronics such as speakers and earbuds.

As a result, Indian manufacturers are being forced to import fully assembled speaker modules instead of producing them domestically, reversing years of progress in local component manufacturing.

“This creates a regressive trend-from component manufacturing back to dependency on finished goods,” ELCINA said in a report submitted to the government.

The disruption puts 5,000–6,000 direct jobs and nearly 15,000 indirect jobs in jeopardy, particularly in hubs like Noida and South India.

China supplies 90 per cent of India's NdFeB magnet demand, and alternatives from Japan, the EU, and the US are 2–3 times more expensive and insufficient in supply.

The restricted supply has also led to rising prices and increased uncertainty for Indian manufacturers.

ELCINA has urged the Indian government to intervene by initiating dialogue with China, seeking exemptions for the electronics sector, and investing in domestic R&D and rare earth magnet manufacturing under existing schemes. It also recommended introducing a production-linked incentive (PLI) scheme focused on critical minerals.

The situation highlights India's deep reliance on imported rare earth materials and the urgent need to build domestic capabilities to secure the future of its electronics industry.

(KNN Bureau)

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