India’s electronics manufacturing industry is grappling with mounting pressure as recent restrictions on gold compound imports have compounded the sector’s ongoing struggle with China’s export curbs on rare earth magnets. As per news agency, industry groups have warned that the dual hit could disrupt production lines, delay investments, and weaken India’s push for electronics self-reliance under schemes like Make in India and PLI. Gold compounds, especially Potassium Gold Cyanide, are essential in manufacturing high-end electronic components such as semiconductors, printed circuit boards, and connectors, due to their superior conductivity. However, the Directorate General of Foreign Trade (DGFT), in a June 17 order, moved these imports from the “free” to the “restricted” category. According to the India Cellular and Electronics Association (ICEA), the sudden policy shift has caused “uncertainty in ongoing efforts to scale up electronics manufacturing,” especially in sub-assemblies that rely on gold-based plating materials.
