India recently introduced new regulations for surveillance equipment, drastically changing the industry. This shift has sent seismic waves through discussions of national security, supply chain trust, and future smart cities. As the world’s most populated country increases its restrictions on technology monitoring streets, ripples are being felt from Silicon Valley to Beijing, especially for the global surveillance market.

India’s New Rules Spark Industry Turmoil

India’s regulatory overhaul began in earnest this April. This policy, which applies to all new or imported CCTV models from 9 April 2025, has thrown global surveillance giants into a tailspin as they scramble to comply with the new requirements. The move is not without precedent. In 2021, India’s government disclosed that one million cameras in public institutions were sourced from Chinese companies, raising alarms about potential vulnerabilities and the possibility of sensitive video data being routed to servers abroad. The new rules are designed to address these concerns by ensuring that all surveillance equipment is robust, secure, and free from hidden backdoors that could be exploited for espionage.

India is not the only country worrying about Chinese surveillance technology. In fact, the United States banned the sale of products manufactured by China’s Hikvision and Dahua due to national security concerns, a decision followed by Britain and Australia. India does not name China directly as the reason for their ban, but it is obvious Chinese companies hold 30% of the CCTV market in India, and 80% of all components come from China; the country is trying to reduce reliance on foreign investment. A senior Indian official involved in the policy told reporters for Reuters,

“There’s always an espionage risk. Anyone can operate and control internet-connected CCTV cameras sitting in an adverse location. They need to be robust and secure.”

China’s own security laws requiring all organizations to assist with domestic intelligence agencies have only worsened the fears India had. The recent disclosure that an unexplained communications device was located within the solar inverters made by China further galvanizes the Indian government to act swiftly and decisively.

Growth of India’s CCTV Market

The surveillance camera market in India is experiencing rapid growth. The country is now one of the hot spots for surveillance equipment, with millions of CCTV cameras installed in public places, offices, and even homes. Since 2018, the Delhi government has installed approximately 280k CCTV cameras in two phases, working with resident welfare associations (RWAs) and market trader organizations. Currently, each assembly constituency has approximately 2,000 CCTV cameras. The 3.5 billion India CCTV market is expected to grow to 7 billion by 2030, according to Counterpoint Research. The growth is not only coming from the public sector, which is responsible for 27% of spending, but also from enterprise companies, hospitality firms, and residential homes that make up the other 73%. Not everyone seems to welcome the new rules. A meeting on 3 April with Indian authorities saw participation from 17 foreign and domestic surveillance equipment manufacturers such as Hanwha, Motorola, Bosch, Honeywell, and even Xiaomi. 

These representatives voiced their concerns regarding the readiness to meet the certification prerequisites. They attempted (and failed) to get some leeway on the timeline. The manufacturers state that a lack of testing centres, tedious inspection processes at the manufacturing units, and demands for the sensitive source code are all contributing to major holdups in the approvals. Ajay Dubey, the South Asia Director for Hanwha, warned that

“millions of dollars will be lost from the industry, sending tremors through the market.”

Retailers like Sagar Sharma from Nehru Place are also reporting the inability to service large orders due to the stagnation in approval pace.

Technical Challenges and Demands Related to Security

The requirements associated with CCTV cameras stipulate that they must include protective shields that prevent tampering, robust malware detection, as well as strong encryption. Reporting to government labs is mandatory in order to submit test results for proprietary software developed by the manufacturers, which must be compiled as detailed reports. If a company uses proprietary communication methods instead of standards like Wi-Fi, it may have to surrender its source code. These Indian authorities can also travel to foreign factories to check for cyber hazards, something that has angered manufacturers worried about their sensitive business information and internal schedules. For example, Infinova’s Indian subsidiary complained about expectations such as source code provision, retest requirements after firmware refreshes, and endless factory audits, creating severe operational strain.

Market Effect and the Way Forward

The immediate effect of the new policy in India is a decrease in the supply of surveillance equipment, which endangers critical infrastructure and commercial projects. Insiders from the industry warn that the long backlog in processing these approvals will result in more supply outages, lost revenue, and additional delays in the deployment of new security systems. Still, the government remains firm. Officials claim that the policy is indispensable for addressing real threats to national security and will maintain a strict enforcement posture. Fast-tracking processes might be possible with additional testing labs, as suggested by the IT ministry, however only 15 labs are currently authorized, each with the capacity to process 28 applications simultaneously.

The Indian government’s dismantling of surveillance technology systems aligns with a rising trend of tech nationalism and regulatory assertiveness. Following border skirmishes with China in 2020, India banned 59 Chinese-owned mobile applications and imposed stricter foreign investment regulations on neighbouring countries. The recent action regarding surveillance cameras is regarded as part of the broader initiative to fortify the nation’s critical technological infrastructure while minimizing reliance on foreign, particularly Chinese, subcontractors.

What’s Next for the Surveillance Industry

The country’s $7 billion surveillance market now grapples with a period of adaptation and uncertainty. Businesses need to adopt rigorous compliance and transparency, as well as cybersecurity measures if they wish to sustain their foothold in one of the largest and fastest growing markets globally. Provided no other country utilizes India’s blueprint, other countries are likely to adopt similar measures to strengthen their digital borders.