New Delhi: India’s growing concern about Chinese surveillance has affected the global CCTV industry, as the country introduces strict new rules requiring camera makers to undergo government testing before selling their products.
The new policy, which came into effect in April 2025, demanded that all manufacturers, whether Indian or foreign, submit internet-connected CCTV camera hardware, software and even source code for inspection in Indian government labs. Officials said the move is necessary to protect national security, especially in light of past concerns over Chinese-made devices.
“The decision is largely driven by fears of Chinese espionage,” reported news agency Reuters quoting a top Indian policymaker. In 2021, Indian government revealed that 1 million CCTV cameras installed in public institutions were from Chinese companies and raised red flags about video data being transferred to servers abroad.
“There’s always an espionage risk,” said Gulshan Rai, India’s former cybersecurity chief. “Anyone can operate and control internet-connected CCTV cameras from a hostile location. They need to be robust and secure,” he added.
Companies affected
Companies affected include Chinese giants like Hikvision, Dahua, and Xiaomi, as well as South Korea’s Hanwha, US-based Motorola Solutions, and others like Bosch and Honeywell. These manufacturers are now required to meet Indian cybersecurity standards before continuing sales in the country, which is home to one of the fastest-growing CCTV markets in the world.
India’s camera market is expected to double from $3.5 billion in 2024 to $7 billion by 2030, according to Counterpoint Research. Chinese brands currently dominate 30% of the market, while Indian firm CP Plus leads with 48%. Despite this, 80% of all components still come from China.
Foreign companies, however, have pushed back. At a meeting with Indian officials on April 3, 17 camera makers said they were unprepared to meet the strict requirements and requested more time, a plea the government firmly rejected.
What Indian officials said
Indian officials defended the policy, saying it doesn’t target any specific country but instead ensures higher cybersecurity standards. However, internal documents and emails reviewed by Reuters reveal that companies from nations sharing a land border with India, like China, face additional scrutiny, such as providing more detailed information about manufacturers.
According to Reuters, Xiaomi, for example, had reported that Indian authorities told them their testing could not proceed until more documents were submitted about their China-based contract manufacturers, an “internal guideline” that wasn’t publicly disclosed.
China’s foreign ministry reacted strongly, accusing India of using national security concerns to unfairly target Chinese businesses. It urged India to offer a fair and non-discriminatory environment for Chinese companies.
The new rules have already started affecting business. Only a small number of camera models have received the necessary approvals, causing delays in major infrastructure and commercial projects. According to official data, as of May 28, there were 342 pending applications for testing, mostly from foreign companies.
Industry leaders are warning of serious disruption. Hanwha’s South Asia director Ajay Dubey warned the IT Ministry that “millions of dollars will be lost” and the policy would send “tremors through the market.”
Indian camera makers like CP Plus have managed to get clearances for some products, but others are still in line. Retailers in New Delhi’s Nehru Place electronics market say their sales have dropped sharply in May, as new stock cannot be supplied without government approval. “It’s not possible to cater to big orders right now,” said Sagar Sharma, a local CCTV retailer. “We have to survive with the stock we have.”
The testing process is handled by India’s Standardization Testing and Quality Certification Directorate under the IT Ministry. The agency currently has 15 labs, capable of reviewing just 28 applications at a time.
The new rules also allow Indian officials to inspect overseas factories and request source code when devices use proprietary communication systems instead of common protocols like Wi-Fi.
Several companies have flagged challenges. Taiwan’s Vivotek warned Indian officials that all ongoing projects could come to a halt due to delays. China’s Infinova raised concerns over repeated audits and re-testing demands that impact their timelines.
