New Delhi, LOGIC.co.id – India has introduced stringent new security rules requiring all internet-connected CCTV cameras—both imported and locally manufactured—to undergo government testing before being sold, sparking alarm among global surveillance gear makers. Official documents and company emails reviewed by Reuters reveal mounting tension between India’s regulators and international manufacturers.
The policy is part of India’s growing vigilance over cybersecurity and foreign tech, particularly from China, following years of concerns about espionage risks. A senior Indian official involved in the policy said the country is increasingly wary of China’s advanced surveillance capabilities.
New Testing Requirements Raise Industry Tensions
Effective from April 9, 2025, all internet-connected CCTV models must be submitted to Indian government labs for hardware, software, and source code assessment. Companies impacted include China’s Hikvision, Xiaomi, and Dahua; South Korea’s Hanwha; and U.S.-based Motorola Solutions.
“There’s always an espionage risk,” said Gulshan Rai, India’s former cybersecurity chief. “Anyone can control internet-connected CCTV cameras from hostile locations. They need to be robust and secure.”
During an April 3 meeting, executives from 17 foreign and local companies—including Bosch, Honeywell, and Xiaomi—told Indian officials they were not ready to meet the strict testing rules and requested a delay. The government declined, stating the policy addresses “a genuine security issue.”
China at the Center of Concerns
India’s concerns over Chinese surveillance are longstanding. In 2021, India’s junior IT minister told Parliament that over one million government-installed CCTV cameras came from Chinese companies, raising red flags over data being transferred to foreign servers.
The U.S. banned Hikvision and Dahua devices in 2022, citing national security threats. The U.K. and Australia have taken similar steps. India’s decision mirrors these moves, with a focus on “checking what goes into these devices,” the senior official noted.
Although the policy does not explicitly target any country, Chinese companies appear to be under tighter scrutiny. Xiaomi reported that its testing request was halted due to “internal guidelines” requiring extra documentation for firms based in countries sharing land borders with India.
China’s foreign ministry responded by urging India to stop “smearing and suppressing” Chinese firms under the guise of national security, and called for a fair, non-discriminatory business environment.
Industry Warns of Disruption
Industry leaders have warned that the rules may disrupt commercial projects and infrastructure initiatives. Companies such as Hanwha, Vivotek, and Infinova cited delays caused by insufficient lab capacity, repeated factory inspections, and the need to share sensitive source code.
Ajay Dubey, Hanwha’s director for South Asia, wrote in an April 9 email that the industry could lose “millions of dollars,” sending shockwaves through the market.
As of May 28, only 35 out of 342 testing applications had been approved, including just one from a foreign manufacturer. Meanwhile, local player CP Plus reported that its flagship models were approved, though many others are still awaiting certification.
Bosch urged Indian authorities to allow temporary business continuity for devices undergoing the testing process.
Growing CCTV Market Faces Uncertainty
India is the world’s most populous nation and one of the fastest-growing markets for CCTV. Over 250,000 cameras are installed in New Delhi alone, with millions more across the country in residential complexes, commercial hubs, and government institutions.
The market is projected to reach $7 billion by 2030, up from $3.5 billion in 2024, according to Counterpoint Research. CP Plus controls 48% of the market, while Hikvision and Dahua hold a combined 30%. Approximately 80% of all CCTV components are sourced from China.
Retailers are already feeling the squeeze. At New Delhi’s bustling Nehru Place electronics market, shopkeeper Sagar Sharma said sales have plunged by 50% due to slow approvals. “We can’t fulfill large orders. We have to survive on existing stock,” he said.
As India ramps up surveillance and security infrastructure, the stricter rules mark a decisive shift toward domestic control over critical technology, even at the cost of global business tensions.