Challenges Facing India’s Electronics Industry
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Double Trouble: Import Restrictions Hit Hard
India’s electronics manufacturing industry is facing tough times. Recent limits on gold compound imports have added to the sector’s woes. China’s export restrictions on rare earth magnets are also causing issues.
Industry Sounds the Alarm
Industry groups have raised concerns. The double blow could disrupt production. It may also delay investments. This could slow down India’s push for electronics self-reliance under programs like Make in India and PLI.
Why Gold Compounds Matter
Gold compounds are vital. They play a key role in making high-end electronic parts. These include semiconductors, printed circuit boards, and connectors. Gold compounds provide excellent conductivity.
However, the Directorate General of Foreign Trade (DGFT) has moved these imports from the “free” to the “restricted” category. This change has created uncertainty in efforts to boost electronics manufacturing.
Industry Worries
- Uncertainty in boosting electronics manufacturing
- Possible discouragement of investment
- Major delays in production lines
- Impact on ease of doing business for component makers
China’s Export Limits
China’s export limits on rare earth elements like terbium and dysprosium are also worrying. These elements are crucial for making NdFeB magnets. These magnets are used in electronics, electric vehicles, and wind turbines.
Over 21,000 jobs are at risk in Noida and South India’s audio electronics sector alone due to these restrictions.
Industry Seeks Government Help
The electronics industry is asking for urgent government action. Unless issues around raw materials and capital goods are resolved, India’s dreams of becoming a global electronics manufacturing hub could face serious setbacks.
