New Delhi: While a fortnight back China had announced that curbs on exports of rare earths are being eased, supplies of critical magnets from China are yet to resume. The delay in supplies has forced automakers and parts suppliers to manage the shortfall on a day-to-day basis.Stakeholders attending the annual convention of the Society of Indian Automobile Manufacturers, industry executives rued the fact that while India and China two countries are engaged in high-level talks, the on-ground situation has remained unchanged, reported Economic Times.“There is an intent, but there has been no change on the ground and magnet supply has not resumed,” Shenu Agarwal, MD & CEO of Ashok Leyland, told ET.Another senior executive at a leading global component supplier said that magnet while market stakeholders are hopeful that official approvals would come through within a month, shipments from China continue to be stalled.“We are managing the magnet shortage on a day-to-day basis, which means it is challenging,” said K N Radhakrishnan, director and CEO, TVS Motor Co.The delay in the shipments of rare-earth magnets began in April, when authorities in China introduced new licensing rules and intensified inspections, which led to custom clearances slowing down. It resulted in unpredictable shipping timelines and uncertainty about future availability.While domestic conglomerate Tata Electronics plans to roll out its first semiconductor chip from its plant at Dholera, Gujarat, by mid-2027 it faces potential delays if India is unable to secure ample supplies of rare earth and critical elements by that time, reported Mint, citing two senior executives privy to the development.“There is considerable use of rare earth metals and minerals in the chip fabrication process. Associated elements such as molybdenum, hafnium and others are also used. If the current China-linked disruption continues by the time our clean room is ready, we may face delays in making wafers from India,” another executive told Mint.Uncertainty in IT sector after US Bill proposes 25% tax on American firms using foreign outsourcing servicesMeanwhile, the IT sector in India is staring at a long period of uncertainty as customers are delaying or re-negotiating contracts in wake of the US debating a proposed 25% tax on American firms using foreign outsourcing services, reported Reuters.Even though the bill is unlikely to pass in its nascent form, the IT sector is expected to be impacted by a gradual shift in how big-name firms in the world’s largest outsourcing market buy IT services, say analysts and experts.India’s $283 billion information technology sector has thrived for more than three decades exporting software services to several tech giants, with this making up for over 7% of GDP.Republican Senator Bernie Moreno has introduced the HIRE Act, which proposes to tax those companies which hire foreign workers over Americans. The Bill proposes that the tax revenue is used for U.S. workforce development.The Bill also seeks to bar firms from claiming outsourcing payments as tax-deductible expenses, said the Reuters report.