The electronics sector, India’s major Make-in-India achievement, could gain lasting global advantages due to a surprise backing from its strategic competitor, China.The Chinese government’s decision to relax restrictions on rare earth metals and critical mineral exports addresses a significant supply constraint for electronic products, including electric vehicles, computers, mobile phones, gaming devices and display-based instruments, as industry leaders told Economic Times.The removal of import restrictions is expected to create additional prospects for advanced manufacturing and research activities in India, whilst helping to maintain stable costs.Also read: India to ease China business visa process- Top executives’ applications from Vivo, Xiaomi and more likely to be approved; move amid improving tiesRare earth metals are essential components in manufacturing magnets for electronics, EVs, robotics and emerging technologies. Previously, India’s electronics supply chain faced difficulties, with Foxconn’s Hyderabad facility experiencing supply constraints for Apple AirPods production following initial restrictions.Subhrakant Panda, managing director, Indian Metals and Ferro Alloys, said, “Industry will be relieved by China lifting its export curbs on rare earth elements and critical minerals. Moreover, it is a positive development which will aid in the normalisation of ties that are in mutual interest.”The recently improving relations between India and China will enhance Beijing’s industrial and diplomatic position, according to Jason Oxman, President and CEO of Washington DC-based Information Technology Industry Council (ITI), in his statement to ET. “Whenever the US vacates policy space, China wins. Where Washington pulls back from trade agreements or imposes tariffs, Beijing steps in with offers of tariff-free trade. That is a long-term risk to U.S. competitiveness,” he said.Indian electronics producers welcomed the announcement. Rajoo Goel, secretary general, Electronic Industries Association of India (ELCINA), told ET, “The bigger hit was for Indian electronics companies in wearables and electric vehicles (EVs), which rely on rare earth magnets in larger quantities. We heard from companies such as Brandworks and boAt which faced difficulties due to shortages. EV makers were also impacted because rare earths are critical for motors and battery systems. However, I would add that while production slowed, no company had to completely shut down operations.”This brief disruption points to the necessity of self-sufficiency and strategic planning, he noted. “Unlike China, India hasn’t sufficiently invested in securing rare earth supply chains despite a decade of efforts to grow its electronics ecosystem. We need to anticipate such risks, prepare alternatives, and allocate resources for domestic exploration, research, and processing of these critical minerals,” he said.Experts indicated that the disruption revealed India’s susceptibility to global fluctuations in critical minerals and emphasised the urgency of establishing its own rare earth infrastructure.Abhishek Bhatia, managing director and partner, BCG India, told ET, “Curbs on export on the select rare earth elements and related magnets from China to India presented significant production risks to industries like automotive, consumer electronics, and wind power, and any change in the current status will be a welcome relief to the industry.”China dominates the global rare earth value chain from extraction to oxide processing and downstream industries, representing over 90% of worldwide production across various applications including magnets, ceramics, catalysts and alloys, Bhatia elaborated. This is where India should actively be looking to build self-reliance through strategic acquisitions of assets globally via mechanisms like KABIL as well as encouraging the private sector to invest across the exploration, mining and downstream value chain,” Bhatia said.KABIL, or Khanij Bidesh India Limited, combines three Indian public sector enterprises: NALCO, HCL, and MECL. It aims to ensure critical and strategic mineral supplies through overseas resource identification, exploration and acquisition. KABIL currently sources minerals including lithium and cobalt from Argentina and Australia.Industry experts suggest that consistent supply will enable Indian manufacturers to increase production, maintain stable raw material costs and plan long-term research investments.Discussing China’s policy change implications, T Senthil Siva Subramanian, head, Institute Industry Interface Programme, Hindustan College of Science and Technology (Sharda Group of Institutions), Mathura, told ET, “Lifting export curbs on rare earth metals, particularly Yttrium, will catalyse growth in India’s opto-electronics ecosystem. As the global leader in yttrium production, China’s policy shift opens new avenues and enormous opportunities for India to accelerate innovation in advanced plasmonic sensing technologies.“He also detailed Yttrium’s hydrogen-sensing capabilities for plasmonic hydrogen gas sensors, noting that with India’s progress in indigenous chip design and fabrication, Yttrium-based Sensor Systems on Chip (YSoC) could represent a significant advancement.These sensors will support defence, space exploration and green energy initiatives, including the National Green Hydrogen Mission, Indian Semiconductor Mission, National Quantum Mission and National Manufacturing Mission. The availability of rare earths will also enable Indian MSMEs to conduct research, innovate and produce rare earth-based opto-electronic chips, advancing domestic capabilities.