Over 21,000 jobs in India at risk over China’s rare earth metal export restrictions: Report
The global economy is once again facing a significant challenge, this time due to China’s restrictions on the export of rare earth metals. According to a recent report, over 21,000 jobs in India’s audio electronics industry are at risk due to these restrictions. This is a massive blow to the industry, which is already facing stiff competition from other countries.
Rare earth metals are a group of 17 elements that are essential for the production of high-tech products such as magnets, catalysts, and phosphors. Terbium and dysprosium, in particular, are key inputs for magnets used in consumer electronics. China is the world’s largest producer of rare earth metals, accounting for more than 90% of global production.
The restrictions on rare earth metal exports were imposed by China in 2019, as part of its efforts to consolidate its dominance in the industry. The move was seen as a strategic decision to create a monopoly over the supply of rare earth metals, giving China a significant advantage in the global market.
The impact of these restrictions is being felt across the globe, particularly in countries that rely heavily on China for their rare earth metal supplies. India is one of the countries that is most affected by these restrictions. The country’s audio electronics industry, which is a significant contributor to its economy, is facing a major crisis due to the shortage of rare earth metals.
According to a report by the Electronics and Computer Software Export Promotion Council (ELCINA), over 21,000 jobs in the audio electronics industry are at risk due to China’s restrictions on rare earth metal exports. The industry body has urged the Indian government to take immediate action to address the crisis and ensure a stable supply of rare earth metals to the industry.
The report highlights that the audio electronics industry in India is heavily dependent on imports of rare earth metals, particularly terbium and dysprosium, which are used in the production of magnets. The industry has been facing a shortage of these metals due to China’s restrictions, leading to a significant slowdown in production and exports.
The impact of the shortage is being felt across the industry, with many manufacturers struggling to maintain their production levels. The shortage is also affecting the quality of products, as manufacturers are forced to use sub-standard materials to meet demand.
The industry body has also highlighted that the shortage of rare earth metals is not just a crisis for the audio electronics industry, but also for the entire electronics industry. The industry is a significant contributor to India’s economy, and any disruption in its supply chain can have far-reaching consequences.
The Indian government has been urged to take immediate action to address the crisis. The industry body has requested the government to provide financial assistance to manufacturers to help them overcome the crisis and ensure a stable supply of rare earth metals. The government has also been asked to negotiate with China to lift the restrictions on rare earth metal exports.
In conclusion, China’s restrictions on rare earth metal exports have put over 21,000 jobs in India’s audio electronics industry at risk. The industry is facing a significant crisis, and the government must take immediate action to address the issue. The crisis is not just limited to the audio electronics industry, but also affects the entire electronics industry. It is essential that the government works with industry stakeholders to find a solution to this crisis and ensure a stable supply of rare earth metals to the industry.
News Source: https://www.newsbytesapp.com/news/business/china-s-rare-earth-curbs-put-21-000-indian-audio-jobs-at-risk/story
