China rare meaning
The effect of stopping the supply of rare meaning from China is now visible on India. Some applicants of the Electronic Component Manufacturing Scheme have warned the government that if the supply of rare meaning is interrupted for 6 months, then they will not be able to meet the production and export of exports. In such a situation, this scheme of the government can fail.
According to the ET report, officials and industry experts of the Ministry of Electronics and Information Technology said that more than 110 applications have been received under this scheme. But, at least 10 companies have expressed concern that due to lack of rare meaning, their plan can derail. Some companies are now thinking of importing components with rare meanings at local level. He said that companies are upset, but this is not a big problem. If the rare meaning is needed, it will be imported. Apart from this, alternative technology or supply sources are also present.
Ashok Chandak, President of India Electronics and Semiconductor Association (IESA), said that ECMS has been launched at a time when industry is trying to increase export and production. But, the lack of rare meaning magnets has greatly affected this sector. This scheme of Rs 22,919 crore is aimed at preparing domestic manufacturing ecosystem of multi-layer printed circuit board (PCB), Li-ion Sales, and Passive Componants like resistors, capacitors and display modules.
Decision in May
China, implemented strict export rules in May. This has had a special impact on PCB manufacturing. Indian Printed Circuit Association (IPCA) secretary KS Babu said that Raw Materials like Copper Clade Laminet, which are completely imported from China, are now expensive. Chinese suppliers are increasing the price by citing shipment issues.
The PCB industry is very interested in ECMS, but the problems of the global supply chain have made the target difficult. The government has promised support and has decided to carry forward the application deadline of the scheme which was ending on 31 July. Industry experts hope that the situation will improve in the coming months, because China also cannot keep export ban for a long time.