India’s surveillance industry has been jolted by stringent new regulations that require all CCTV camera imports to undergo software, hardware, and source code testing in government-approved laboratories. The decision, driven largely by fears over Chinese surveillance technology, mandates that companies like China’s Hikvision, Dahua, and Xiaomi must now comply with strict cybersecurity protocols before accessing the Indian market.
The policy, enforced from April 9, aims to address potential espionage threats posed by internet-connected surveillance systems. In 2021, a junior IT minister revealed in Parliament that over 1 million cameras used in Indian government buildings came from Chinese companies, raising alarms about data vulnerabilities and the transfer of footage to foreign servers.
Global Backlash and Industry Disruption
Global manufacturers have expressed significant concerns about India’s new policy. Executives from 17 foreign firms, including Motorola, Bosch, Honeywell, and South Korea’s Hanwha, met with Indian officials in April to request a delay in implementation. Many cited difficulties in meeting certification requirements, especially the need to submit sensitive source code and undergo factory inspections abroad.
Ajay Dubey, Hanwha’s South Asia director, warned the IT ministry that “millions of dollars will be lost from the industry,” noting the broader economic tremors the rules could trigger. Meanwhile, Indian authorities have acknowledged that testing capacity is limited, with only 35 out of 342 submitted applications processed so far.
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Retailers, too, are feeling the squeeze. At New Delhi’s Nehru Place electronics hub, CCTV shop owners report sales plunging by up to 50% due to approval delays. “We have to survive with the stock we have,” one vendor lamented.
India’s Cybersecurity Push and Strategic Policy Shift
Indian officials, however, argue that the move is not about protectionism but about securing national infrastructure. Gulshan Rai, India’s cybersecurity chief from 2015 to 2019, stressed that any connected device placed in sensitive areas could be exploited. “They need to be robust and secure,” he said, supporting the government’s demand for transparency and technical scrutiny.
India’s policy does not name any specific country, but the language and execution have clearly targeted suppliers from nations that share a land border with India—most notably China. Manufacturers were reportedly asked for additional registration details if their components originated from such countries.
Since 2020, India has intensified its scrutiny of Chinese tech, banning over 100 apps and tightening FDI rules in sectors linked to national security. The CCTV mandate is seen as an extension of this broader push for technological sovereignty.
A Market in Transition: Winners, Losers, and the Road Ahead
The surveillance camera market in India, valued at $3.5 billion last year, is projected to double to $7 billion by 2030. With public and private sector demand soaring, the certification bottlenecks threaten to delay critical infrastructure projects, including public safety and smart city initiatives.
Domestic brands like CP Plus, which already command a significant share of the Indian market, may benefit from reduced competition. Meanwhile, foreign firms await more clarity from India’s Standardization Testing and Quality Certification Directorate, which is struggling to clear backlogs amid heightened scrutiny.
Despite industry pushback, Indian authorities remain firm on enforcing cybersecurity safeguards. The unfolding surveillance policy marks a pivotal moment in India’s quest for digital self-reliance—one that could redefine its relationship with global tech suppliers for years to come.