China’s Rare Earth Group Now Worries Indian Electronics Sector: From TVs to Smartwatches, Concerns Grow

A growing global concern over China’s control on rare earth exports is now beginning to trouble India’s electronics industry. From television and speaker manufacturers to smartwatch and smart gadget makers, many Indian companies are becoming increasingly uneasy about future supplies. As production units continue to expand beyond metros into Tier 2 cities, the issue carries significant implications for India’s tech and manufacturing ecosystem.

Why Rare Earth Materials Matter
Rare earth elements are essential components used in chips, magnets, sensors, and batteries—core parts of devices like TVs, smartphones, EVs, and wearables. China currently dominates the global supply of these materials, accounting for over 80% of exports. Any disruption or restriction in supply can significantly affect global production cycles.

China’s Strategy Sparks Global Worry
Recently, concerns resurfaced after reports suggested that China could further tighten its grip on the export of critical minerals, possibly using them as a bargaining chip in global trade. It’s a reminder of the past when even Donald Trump had to negotiate with China over the same issue during his presidency. This time, Indian manufacturers are watching closely.

Impact on Indian Electronics Makers
In India, mid-sized electronics brands—many of which operate from or supply to Tier 2 cities like Jaipur, Coimbatore, Indore, and Lucknow—fear price hikes and production delays. Products like smartwatches, speakers, and even LED TVs may become costlier or harder to produce if raw material shortages occur.

Startups and Assembly Units Under Pressure
Several Indian startups that assemble or source components locally now face the challenge of finding alternative suppliers or investing in in-house capabilities, which may not be feasible for all. Tier 2 cities that are seeing growth in electronics manufacturing clusters could face job and revenue impacts if disruptions occur.

Can India Reduce Its Dependence?
India has taken initial steps through schemes like ‘Make in India’ and the PLI (Production Linked Incentive) scheme to boost local manufacturing. But experts say that building rare earth supply chains within the country will take time and significant investment. Until then, dependence on imports, especially from China, remains high.

Industry Seeks Government Support
Industry leaders are urging the government to speed up policy interventions, including strategic stockpiling of critical materials and forming global partnerships with rare earth-producing countries like Australia and Vietnam. The idea is to ensure India’s fast-growing electronics sector remains stable and competitive.

Conclusion:
As China’s influence over rare earth materials raises fresh alarms, India’s electronics industry finds itself in a tight spot. For manufacturers in both metro and Tier 2 cities, the next few months will be crucial in determining supply chain stability. With demand for gadgets only rising, timely action and smart strategy will be key to safeguarding India’s digital and manufacturing future.