India’s Surveillance Crackdown on Chinese Devices Jolts Global Security Market

India's new mandate for cybersecurity testing of internet-connected CCTV cameras, targeting Chinese brands, is shaking the global surveillance industry.

India CCTV Crackdown Disrupts Market
India’s new surveillance rules requiring cybersecurity vetting of CCTV devices, particularly Chinese-made, create supply bottlenecks and industry outcry. Image: CH



New Delhi, India – May 28, 2025:

India's sweeping new cybersecurity mandate for internet-connected surveillance devices has sent shockwaves through the global security equipment industry. Effective April 9, the policy requires all CCTV cameras—whether imported or locally manufactured—to undergo rigorous testing and certification by government-accredited labs. The move, widely interpreted as a security push targeting Chinese technology, has drawn concern from industry giants and raised fears of widespread supply disruptions.
Major manufacturers such as China’s Hikvision, Dahua, and Xiaomi, South Korea’s Hanwha, and U.S.-based Motorola Solutions are now required to submit their surveillance hardware for a multifaceted review. The evaluation includes inspections of software, hardware, encryption protocols, and even proprietary source code, according to documents reviewed by Reuters. Despite widespread appeals for a delay, the Indian government has stood firm, citing national security threats.
“There's always an espionage risk,” said Gulshan Rai, former national cybersecurity coordinator of India. “Anyone can operate and control internet-connected CCTV cameras sitting in an adverse location.”
The roots of the policy can be traced back to longstanding concerns over Chinese surveillance. In 2021, Indian authorities revealed that nearly one million government-installed cameras came from Chinese firms and could potentially transmit sensitive data abroad. This revelation led to increasing scrutiny of Chinese-origin technologies in sensitive infrastructure.
In April, the Indian IT ministry convened a high-stakes meeting with representatives from 17 major camera makers, including Honeywell, Bosch, Infinova, and Vivotek. Minutes from that meeting show manufacturers expressing deep concern over the timeline and scope of the certification process, which they described as overly demanding and potentially disruptive.
“All ongoing projects will go on halt,” warned Sanjeev Gulati, director of Vivotek India, during the meeting. While he expressed hope for quick clearance later, others, like Hanwha’s South Asia director Ajay Dubey, highlighted looming financial risks: “Millions of dollars will be lost from the industry, sending tremors through the market,” he cautioned in an email to India’s IT ministry.
The Indian government's requirements include tamper-proof hardware, strong encryption, malware detection systems, and compliance audits—sometimes at overseas factories. Companies using proprietary software must also provide source code to Indian inspectors, a sticking point for firms wary of intellectual property risks.
Though the government has not named China directly in its regulations, internal communications indicate added scrutiny for companies based in countries that share land borders with India. Xiaomi reported delays stemming from additional documentation requests linked to internal policies targeting China-based suppliers.
Beijing has voiced its discontent. “We urge the Indian side to stop smearing and suppressing Chinese companies under the pretext of national security,” said a spokesperson for China’s foreign ministry.
As of May 28, Indian authorities had cleared only 35 out of 342 CCTV product certification applications—just one from a foreign firm. Indian brand CP Plus confirmed approval for several products, while global players like Bosch have requested leeway to continue business during the review.
On the ground, the effect is already palpable. Retailers in New Delhi, like Sagar Sharma, report a plunge in CCTV availability. “Sales are down 50 percent this month,” he said. “We simply don’t have enough stock to fulfill large orders.”
India’s policy signals a decisive move to assert greater control over foreign surveillance technologies. But with global supply chains entangled and regulatory bottlenecks mounting, the ripple effects may reverberate well beyond its borders.

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