The Indian government is set to limit the use of Chinese-manufactured surveillance equipment in the country, following a series of recent pager explosions in Lebanon, according to a report by The Times of India.
The report quoted sources as saying that the government plans to speed up the enforcement of regulations prioritising domestic vendors in the surveillance industry.
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In light of the pager explosions, the government is closely examining the sourcing of certain components in the supply chain, an industry source said, as mentioned in the report.
The government’s updated policy on surveillance cameras, expected to be implemented on October 8, will likely push Chinese companies out of the market, giving Indian firms an advantage. Though government notices were issued in March and April, sources confirmed that the timeline for their enforcement has been accelerated, with a stronger emphasis on security following the incidents in Lebanon. The fast-tracking of CCTV guidelines will allow only suppliers from “trusted locations” to operate within the Indian market, the report said.
Chinese companies likely to be affected
The report quoted Varun Gupta, a research analyst at Counterpoint Research, as saying that CP Plus, Hikvision, and Dahua currently dominate over 60 per cent of the Indian market. They will now need to focus more on localisation and invest in research and development to comply with the new regulations, Gupta said.
While CP Plus is an Indian company, Hikvision and Dahua are based in China. In November 2022, the US Federal Communications Commission (FCC) banned equipment sales from Hikvision and Dahua, citing “unacceptable risk to national security.”
US bans on Chinese CCTV firms
The FCC’s decision was based on concerns that Chinese-made surveillance equipment could be used for espionage. Similarly, the Indian government has been rejecting tenders from Chinese CCTV firms in favour of European brands like Bosch, even though they are significantly more expensive — up to seven to ten times higher than their Chinese counterparts.
India’s push for ‘trusted location’ suppliers
The report quoted a source as saying that the emphasis on surveillance camera security predates the pager explosions.
“The guidelines for security certification, issued in March, will come into force in October. The main concern is not the explosions but the risk of data leaks from CCTV cameras in sensitive areas. The government aims to ensure that only products from trusted locations are used,” the source said, as mentioned in the report.
What is a ‘trusted location’?
A “trusted location” is defined as a place where the Indian government has full transparency over the manufacturing process, ensuring no vulnerabilities or backdoors that could compromise data. Although there are currently no plans for a “rip and replace” initiative, it remains a possibility in the future.
Two gazette notifications issued earlier this year outlined guidelines for promoting locally made surveillance cameras and detailed the requirements for CCTV certification. These orders set the stage for India’s shift toward domestic products in the surveillance sector, reinforcing the “Make in India” initiative, the report said.
First Published: Oct 01 2024 | 10:04 AM IST
