DGFT Curbs On Gold Imports Rattles Electronics Industry

(MENAFN- KNN India) New Delhi, July 7 (KNN) India's electronics industry has raised strong objections to the government's recent restrictions on the import of gold compounds, warning of disruptions to production lines and potential setbacks to domestic manufacturing.

In an order dated June 17, the Directorate General of Foreign Trade (DGFT) moved colloidal precious metals and compounds, including potassium gold cyanide (PGC), from the 'free' to 'restricted' import category.

As a result, customs authorities have begun halting consignments at ports, affecting the supply of essential inputs for printed circuit boards and other electronic components.

According to The Economic Times, the Electronic Industries Association of India (Elcina) stated in a letter to the Ministry of Electronics and IT that the restricted items are used in minimal quantities for captive consumption by electronics manufacturers and do not enter the bullion trade or broader precious metals market.

Echoing these concerns, the India Cellular and Electronics Association (ICEA) also wrote to the ministry, calling for immediate resolution.

The association underscored that gold compounds are critical to the sector's ongoing efforts to localise component manufacturing, a cornerstone of India's broader electronics production goals.

The industry's appeal comes amid broader global supply chain pressures, including China's recent export restrictions on rare earth magnets - another key input for both automotive and electronics sectors.

(KNN Bureau)

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