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India is tightening its grip on surveillance technology, sparking major concerns within the global CCTV industry. In a move driven by rising fears over Chinese espionage, the Indian government has introduced sweeping new regulations requiring all internet-connected CCTV cameras—whether manufactured locally or imported—to undergo rigorous software, hardware, and even source code testing in government-approved labs.

Since April 9, companies like China’s Hikvision and Dahua, South Korea’s Hanwha, Xiaomi, Motorola Solutions from the U.S., and even domestic players have had to comply with these new certification demands before selling their products in India. The country, now the world’s most populous nation, is one of the fastest-growing markets for surveillance gear, projected to hit $7 billion by 2030.

However, this crackdown is creating significant turbulence. Global manufacturers are voicing frustration, warning of supply disruptions and stalled projects due to the complex certification process and sluggish government approvals.

India’s fear is not unfounded. The government believes Chinese-manufactured surveillance equipment poses a high risk of espionage. A senior Indian official told Reuters that China’s laws obligate firms to cooperate with intelligence agencies, heightening national security risks.

These concerns are not new. As far back as 2021, India reported that over a million surveillance cameras installed in government buildings were of Chinese origin, with sensitive data potentially being sent to servers abroad. Following violent border skirmishes with China in 2020, India has already banned dozens of Chinese apps and tightened foreign investment regulations from neighboring countries.

The newly enforced policy expands earlier rules that only applied to cameras used in government contracts. Now, it affects the broader market—including private homes, businesses, and public infrastructure. Currently, India has more than 250,000 CCTV cameras in New Delhi alone, and over 80% of all camera components are sourced from China.

According to the minutes of an April 3 meeting, officials from India’s IT Ministry met with 17 surveillance equipment manufacturers, including Bosch, Honeywell, Hanwha, and Xiaomi. Many companies argued they were not ready for the sudden change and pleaded for a delay—only to be firmly denied. Indian authorities insisted that the rules were necessary to ensure the security and integrity of national surveillance infrastructure.

Executives say compliance is complicated. Some manufacturers are struggling with requirements such as source code disclosure, repeated testing after firmware updates, and multiple factory audits. These issues have delayed approvals for hundreds of camera models. As of late May, only 35 out of 342 submitted product applications had completed the approval process, and just one of those belonged to a foreign company.

Retailers are feeling the pinch. At Nehru Place in New Delhi, once bustling with CCTV business, shop owners say revenue has dropped by 50% in May. “Big orders are on hold,” one retailer said. “We’re just surviving on the stock we already have.”

While Indian companies like CP Plus have received approval for a few models, others are still waiting. Meanwhile, foreign firms like Bosch and Vivotek are urging the Indian government to allow temporary sales of existing stock to prevent business losses while certification is pending.

India’s aggressive move signals a significant shift in how countries might handle the growing overlap between national security and consumer technology. As cyber risks become increasingly sophisticated, the pressure on surveillance tech manufacturers worldwide is only expected to rise.