India’s newly enforced security regime for closed-circuit television (CCTV) cameras has sparked widespread disruption across the global surveillance industry, with major manufacturers facing delayed approvals, potential revenue losses, and increased scrutiny over software and hardware integrity.
The policy, which took effect on 9 April 2025, mandates that all internet-connected CCTV systems sold or imported into India must undergo stringent testing by government-accredited laboratories. These tests include assessments of both hardware and software, and in some cases, the examination of sensitive source code.
The rules have been introduced in response to concerns over foreign surveillance threats, particularly from China. While the regulations do not specifically name any country, senior Indian officials have confirmed that the move is part of a broader strategy to mitigate risks associated with Chinese-made technologies.
According to documents reviewed by Reuters and interviews with individuals familiar with the matter, the new requirements have led to a significant backlog in the approval pipeline. As of 28 May, 342 applications covering hundreds of CCTV models were pending with the Standardization Testing and Quality Certification (STQC) Directorate, which oversees surveillance gear approvals under the Ministry of Electronics and Information Technology.
Only 35 applications had completed the certification process, and just one was from a foreign manufacturer.
Among those affected are prominent Chinese firms Hikvision, Dahua, and Xiaomi, alongside South Korea’s Hanwha, the U.S.-based Motorola Solutions, and the British company Norden Communication. An email from Hanwha’s director for South Asia, Ajay Dubey, warned that “millions of dollars will be lost from the industry, sending tremors through the market” due to the delays.
Executives from 17 foreign and domestic manufacturers met with Indian officials on 3 April in a bid to defer the implementation. However, the government rejected requests for a grace period, citing the urgent need to safeguard national security.
“There’s always an espionage risk,” said Gulshan Rai, India’s former cybersecurity chief. “Anyone can operate and control internet-connected CCTV cameras from an adverse location.”
A government official involved in the policy’s development confirmed that the new measures were in part driven by apprehension over Chinese surveillance capabilities. The official cited examples such as the remote detonation of devices in conflict zones and the compulsory data-sharing obligations imposed on Chinese firms under Beijing’s security laws.
China’s Ministry of Foreign Affairs responded to the developments, stating its opposition to the “generalisation of the concept of national security to smear and suppress Chinese companies,” and urging India to maintain a non-discriminatory business environment.
The impact on Indian retailers has been immediate. At New Delhi’s Nehru Place electronics market, a hub for security equipment, vendors reported sharp declines in business. Sagar Sharma, who owns a CCTV retail outlet, said his revenue had halved since April. “It is not possible right now to cater to big orders,” he said. “We have to survive with the stock we have.”
India’s domestic market is undergoing rapid expansion, with over 250,000 CCTV cameras already deployed in New Delhi alone. Counterpoint Research estimates the Indian surveillance camera market will double from $3.5 billion in 2024 to $7 billion by 2030. At present, domestic brand CP Plus holds a 48% market share, while Chinese companies account for roughly 30%.
Despite the new testing rules, government data reveals that 80% of components used in India’s CCTV systems originate in China, highlighting the country’s continued reliance on foreign manufacturing.
Manufacturers have expressed concern over the scope and technical demands of the policy. The rules require secure enclosures, malware detection, data encryption, and in cases where non-standard communication protocols are used, submission of source code. Infinova, a Chinese manufacturer, flagged challenges including mandatory retesting after firmware updates and multiple factory audits.
Taiwan’s Vivotek also indicated that compliance issues risked halting ongoing projects. India director Sanjeev Gulati told Reuters that the firm had submitted applications and was awaiting clearance.
The STQC currently operates 15 labs, each capable of handling only two dozen applications concurrently. Following Reuters’ queries, data on lab capacity was removed from the agency’s website.
In response to industry pressure, Indian officials have indicated they may accredit more testing facilities. However, no timeline has been given, and companies continue to operate in a regulatory limbo.
The present framework stems from a decision in June 2024 to require testing for all government-acquired CCTV devices. Its extension to the private sector—covering 73% of national demand—has broadened the policy’s impact considerably.
Motorola Solutions, Bosch, and CP Plus have submitted devices for testing. While CP Plus has secured approval for some of its flagship models, it confirmed that several others remain under review.
Bosch has urged Indian regulators to allow sales to continue for pending products until certification is granted, highlighting the commercial strain caused by the transition.
With national security cited as the overriding priority, the Indian government appears unlikely to soften its stance, even as industry players struggle to meet the operational demands of the new rules. For now, the global surveillance sector faces a reckoning in one of its fastest-growing markets.
