India’s booming CCTV industry has hit a wall. With millions of surveillance cameras installed across its cities, the country has become one of the world’s largest markets for monitoring systems. But now, a growing fear that Chinese-made surveillance products may be compromised for espionage has triggered a sweeping crackdown, shaking the industry from top to bottom.
At the center of the storm are new government regulations that force all manufacturers—foreign and domestic—to submit their hardware, software, and even source code for review in government labs. Though these rules do not name China directly, the message is clear: India is cracking down on Chinese technology it suspects may have been purposely designed to spy on Indian citizens.
Why India is Taking Action
The Indian government has good reason to worry. In 2021, officials admitted that one million cameras deployed in government institutions came from Chinese firms. Experts warned that data from these cameras could be rerouted to servers abroad. And with China’s national security laws requiring its companies to cooperate with state intelligence operations, Indian policymakers believe there is a real possibility that Chinese-made surveillance gear could act as a tool of foreign espionage.
“There’s always an espionage risk,” said Gulshan Rai, India’s former cybersecurity chief. “Anyone can operate and control internet-connected CCTV cameras sitting in an adverse location. They need to be robust and secure.”
Other countries are already ahead of India in this regard. The United States banned Hikvision and Dahua equipment in 2022, citing national security risks. The UK and Australia followed with similar restrictions. India, though more careful in its language, is now moving in the same direction—albeit with massive implications for its domestic surveillance economy.
A Blow to Business
India’s $3.5 billion surveillance camera market is on track to double by 2030. But that growth may stall under the weight of new rules. At an April 3 meeting with Indian officials, representatives from 17 companies—including Hanwha, Motorola, Bosch, Honeywell, and Xiaomi—warned that the new certification process was unworkable in the short term.
They complained about long delays, a lack of testing capacity, and requirements to disclose sensitive information such as source code. Xiaomi reported that its products were delayed because its contract manufacturers in China had to supply extra documentation due to “internal guidelines” for firms from countries sharing a land border with India.
Ajay Dubey, director for South Asia at Hanwha, told the IT ministry that “millions of dollars will be lost from the industry, sending tremors through the market.”
Retailers are already feeling the pinch. Sagar Sharma, who runs a CCTV shop in New Delhi’s Nehru Place, said his business dropped by half in May compared to April. “It is not possible right now to cater to big orders,” he said. “We have to survive with the stock we have.”
Technical Demands and New Oversight
The new rules are not just about paperwork. Cameras must now have tamper-proof housings, built-in malware detection, and encrypted communication. Manufacturers using proprietary communication methods must allow Indian labs to inspect their source code. The government also reserves the right to inspect overseas manufacturing facilities for potential cyber vulnerabilities.
These policies have forced many manufacturers into a holding pattern. As of late May, more than 340 applications were still pending review, with approvals completed for only 35. Only one foreign manufacturer had received clearance.
India’s own CP Plus brand received approval for some of its flagship models but said other models were still awaiting certification. Companies like Bosch have urged the government to allow temporary sales of unapproved models, but authorities have shown no signs of backing down.
A Pattern of National Tech Defense
This isn’t India’s first step in restricting Chinese influence. After deadly border clashes with China in 2020, India banned TikTok and 58 other Chinese-owned apps, and placed strict rules on investment from countries it shares a land border with. Recent revelations that Chinese solar power inverters were found to contain unexplained communication devices only strengthened the case for tighter controls.
While India’s new surveillance rules do not explicitly ban Chinese products, they make it difficult for Chinese companies to operate without giving up sensitive business information—something many are unwilling to do.
Compliance with the new rules will take time, investment, and transparency—especially from foreign players. But for India, the cost is worth it. Officials believe these steps are necessary to protect national security and assert technological sovereignty in a world increasingly shaped by digital threats.
As the global surveillance market watches India’s crackdown, other countries may follow its lead. What began as a regional response to Chinese influence could become a blueprint for a broader shift in how nations protect their digital borders.