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China disrupts global supplychains; 1000s of jobs in India at risk
- China has imposed restrictions on the export of rare-earth metals, essential for the electronics industry, disrupting global supply chains.
- The restrictions have impacted the Indian hearables and wearables manufacturing industry, forcing Indian device makers to import fully assembled speaker modules from China.
- Earlier, rare-earth elements were imported from China to produce high-performance NdFeB magnets used in consumer electronics in India.
- Local component manufacturing industries in India are suffering due to the restrictions, leading to a shift towards importing finished goods and putting 5,000 direct jobs at risk.
- An additional 15,000 indirect jobs in the southern regions of India and Noida are also at risk due to the disruptions in the supply chain.
- China supplies 90% of NdFeB magnets to India, causing a price hike and making these magnets more expensive.
- Other exporting nations are unable to meet the growing demand in India, and switching suppliers would not be feasible due to costs.
- ELCINA has sought government intervention to enable local production of rare-earth magnets in India to promote self-reliance in the electronics manufacturing sector.
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