Bad news for this sector as over 21000 jobs in India at risk due to...; linked to China's...

Restrictions imposed by China on the export of rare earth metals have posed a risk to over 21,000 jobs in India's audio electronics segment, according to an estimate shared by industry body ELCINA with the government, PTI reported. ELCINA said that the move has disrupted global supply chains, hitting India's fast-growing hearables and wearables sector hard. The jobs are at risk as the device makers are planning to import fully-assembled speaker modules from China.

In April, China implemented strict export licensing on rare earth elements like terbium and dysprosium, which are key inputs for high-performance NdFeB (Neodymium-Iron-Boron) magnets used in consumer electronics such as hearables, wearables, and speakers.

“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 noted.

India's dependence on China for NdFeB magnets 

Rare earth magnets make up 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 those imports, reports suggest.

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Elcina urges government action

Elcina, India's oldest electronics industry body, has urged the government to begin government-to-government (G2G) talks with China, seek industry-specific exemptions, and boost domestic R&D and manufacturing under the electronics component manufacturing scheme. The body also recommended that the government consider a production-linked incentive (PLI) scheme for critical minerals, to reduce India’s reliance on China and ensure the resilience of its electronics supply chain.