Putting over 21,000 jobs at risk and reversing progress in domestic manufacturing, China’s rare earth export curbs could silence India’s audio electronics sector, says ELCINA.
India’s audio electronics manufacturing industry is bracing for a setback, with more than 21,000 jobs at stake due to China’s recent restrictions on the export of rare earth elements. This was recently estimated by the Electronic Industries Association of India (ELCINA).
China, a dominant global supplier of rare earth materials, introduced strict licensing norms in April for critical elements like terbium and dysprosium. These materials are vital for producing Neodymium-Iron-Boron (NdFeB) magnets, widely used in audio systems, wearables, and other consumer electronics.
According to a report by The Economic Times, ELCINA warned that the move has disrupted global supply lines and hit Indian manufacturers hard. As a result, many companies are reverting to importing fully assembled speaker modules from China instead of manufacturing them domestically; a reversal of the government’s push for component-level production under the “Make in India” initiative.
In a recent report to the government, the association stated that the shift could put at risk between 5000 and 6000 direct jobs, along with a further 15,000 indirect positions, especially in manufacturing hubs such as Noida and regions in South India.
India relies heavily on imports for these magnets, with China supplying nearly 90% of the requirement. The components, though small, account for up to 7% of the total manufacturing cost in audio devices.
Alternative sources, such as those in the US, EU, and Japan, offer limited capacity and are significantly more expensive, making them unsustainable for many Indian firms.
In response, ELCINA has urged the government to initiate talks with China for sector-specific relief, encourage domestic research and development (R&D), and consider expanding the production-linked incentive (PLI) scheme to include rare earth magnet manufacturing.
Industry leaders say this disruption should serve as a catalyst for long-term localisation and reduced reliance on foreign components.
