The Indian government is reportedly planning to limit the use of Chinese-made surveillance equipment in response to recent incidents of coordinated pager blasts in Lebanon. Sources familiar with the matter have indicated that the government is set to implement guidelines giving priority to procurement of surveillance equipment from local vendors.
According to a report, the new policy regarding surveillance cameras is set to come into effect from October 8, which will effectively reduce the presence of Chinese companies in India’s surveillance sector and create opportunities for domestic firms. “In the wake of the pager blasts, the government will be taking a close look at critical sourcing of certain components or parts of the supply chain,” an industry source said, according to the report.
The move follows growing concerns over the security implications of foreign surveillance technologies. The government had issued gazette notifications in March and April this year outlining “Make in India” guidelines for surveillance cameras and setting out criteria for CCTV certification. However, the enforcement timeline has been accelerated in response to the security situation in Lebanon.
The revised guidelines will restrict operations from “trusted locations” to suppliers, ensuring that the Indian government has visibility over the entire manufacturing process and can guarantee the absence of potential data security vulnerabilities.
According to the report, the source said, “The guidelines for security certification issued in March will come into effect in October. The main concern is not the explosion but the risk of data leakage from CCTV cameras in sensitive areas. The government aims to ensure that only products from trusted places are used.”
Market analysis shows that the current major players in India’s surveillance market include CP Plus, Hikvision and Dahua, the latter two of which are Chinese companies, with a combined market share of over 60%. In November 2022, the US Federal Communications Commission (FCC) banned the sale of Hikvision and Dahua equipment, citing national security concerns.
Varun Gupta, a research analyst at Counterpoint Research, said these companies will need to increase their localization efforts and invest in research and development to comply with the new guidelines. Although the government has not yet adopted a “rip and replace” policy for existing surveillance equipment, it remains a possibility as the scenario evolves. The emphasis on promoting domestic products is expected to significantly reshape purchasing practices in India’s surveillance market.
