India Tightens CCTV Rules Amid China Spy Fears
India imposes mandatory security testing on all CCTV cameras sold since April 9. Concerns over Chinese surveillance trigger scrutiny of source code and factory access.
India has rolled out strict new security-testing rules for surveillance equipment, targeting potential espionage risks from China and shaking the global CCTV industry, Reuters revealed Wednesday.
Driven by what officials call a "genuine security issue," the Indian government now requires all internet-connected CCTV cameras—whether manufactured domestically or imported—to undergo software, hardware, and source code evaluations in accredited government labs.
The move comes as India expresses growing alarm over China's surveillance capabilities. In 2021, over one million government-installed CCTV units were found to be from Chinese manufacturers with potential data vulnerabilities.
“There’s always an espionage risk,” said former cybersecurity chief Gulshan Rai. “Anyone can control these devices remotely if not secured.”
Global players including Hikvision, Dahua, Xiaomi, Motorola, Hanwha, Honeywell, and Bosch pushed back during an April 3 meeting with Indian regulators, claiming they were unprepared for the rules and feared project delays. Their appeals for a postponement were rejected.
Ajay Dubey of Hanwha warned the Indian IT ministry that “millions of dollars will be lost,” while Taiwan’s Vivotek said its ongoing projects had halted. India’s testing body had only cleared one foreign application by May 28, out of 342 pending.
India’s new policy is part of a broader clampdown on Chinese technology that began after deadly border clashes in 2020. The government has since banned TikTok, tightened investment rules, and restricted imports of Chinese solar inverters and telecom gear.
The current CCTV policy does not explicitly single out China but includes internal guidelines that affect applicants from land-border countries. Xiaomi, for instance, was asked to provide added documentation for Chinese-linked manufacturers.
A $7 Billion Market in the Balance
India's booming CCTV market—valued at $3.5 billion in 2024 and projected to double by 2030—relies heavily on Chinese components. Hikvision and Dahua hold 30% of the market, while Indian brand CP Plus leads with 48%. But nearly 80% of the parts come from China.
Retailers in New Delhi’s Nehru Place said revenue had plunged 50% in May due to approval delays. “We have to survive with the stock we have,” said shop owner Sagar Sharma.