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India's alarm about Chinese espionage is rocking the surveillance industry

    By Aditya Kalra

    New Delhi (Reuters) -Global Makers or Surveillance Gear have been clamped in recent weeks with Indian supervisors about controversial new security rules that requires manufacturers of CCTV cameras to submit hardware, software and brown code for assessment in government laboratories, official documents and company emails.

    The security test policy has led to the industrial warnings for disruptions of the delivery and added to a series of disputes between the administration of Prime Minister Narendra Modi and foreign companies on regulatory issues and what some people regard as protectionism.

    New Delhi's approach is partially driven by his alarm about the advanced surveillance capacities of China, according to a top -indian official involved in the policy. In 2021, the then IT minister of Modi told the Parliament that 1 million cameras were in government institutions of Chinese companies and there were vulnerabilities transferred with video data to servers abroad.

    According to the new requirements of April of April, manufacturers such as Hikvision, Xiaomi and Dahua in China, Hanwha in South Korea and Motorola solutions from the US must submit cameras for testing by Indian government laboratories before they can sell them in the most densely populated nation in the world. The policy applies to all CCTV models associated with the internet that have been made or imported since 9 April.

    “There is always a spy risk,” Gulshan Rai, the cyber security chef from India from 2015 to 2019, told Reuters. “Everyone can operate and control internet-bound CCTV cameras that are in a negative location. They must be robust and safe.”

    Indian officials met on 3 April with managers of 17 foreign and domestic makers of security equipment, including Hanwha, Motorola, Bosch, Honeywell and Xiaomi, where many of the manufacturers said they were not ready to satisfy the certification rules and lumped without delay, according to the official minutes.

    When rejecting the request, the government said that India's policy “is tackling a real safety problem” and must be enforced, show the minutes.

    India said in December that the CCTV rules, which do not choose any country by name, were intended to “improve the quality and cyber security of security systems in the country.”

    This report is based on a Reuters evaluation of dozens of documents, including data on meetings and e -mails between manufacturers and Indian IT ministerial officials, and interviews with six people familiar with the Drive of India to investigate the technology. The interactions have not been reported before.

    Insufficient test capacity, deferred factory inspections and government control of the sensitive source code belonged to the most important issues that cameramakers had said that they had delayed approvals and disrupting the disrupted of non-specified infrastructure and commercial projects.

    “Millions of dollars will be lost from the industry, who send tremoren through the market,” Ajay Dubey, director of Hanwha for South Asia, told the IT minister of India in an e -mail on April 9.

    The IT ministerie and most companies identified by Reuters have not responded to requests for comments about the discussions and the impact of the test policy. The ministry told the managers on 3 April that it could consider accrediting more test laboratories.

    Millions of CCTV cameras have been installed in recent years in Indian cities, offices and residential complexes to improve security monitoring. New Delhi has more than 250,000 cameras, according to official data, usually mounted on posts at important locations.

    The rapid recording is set to strengthen the market for Surveillance Camera in India to $ 7 billion by 2030, from $ 3.5 billion last year, Counterpoint research analyst Varun Gupta told Reuters.

    The Chinese Hikvision and Dahua account for 30% of the market, while the Indian CP Plus has a 48% share, Gupta said, adding that around 80% of all CCTV components come from China.

    Hanwha, Motorola Solutions and the Norden communication of Great -Britain told civil servants per e -mail in April that only a fraction of the 6,000 camera models of industry had approvals under the new rules.

    China concern

    In 2022, the US prohibited the sale of Hikvision and Dahua equipment, with reference to national security risks. Great Britain and Australia have also limited devices made by China.

    Similarly, with CCTV cameras, India must ensure that there are checks about what is used in these devices, which chips go in, “the high Indian officer told Reuters.” China is part of the concern. “

    The state laws of China require that organizations work together with intelligence work.

    Reuters reported this month that inexplicable communication equipment had been found in some Chinese solar energy -inverters by American experts who have investigated the products.

    Since 2020, when the Indian and Chinese forces collided at their border, India has forbidden dozens of apps in Chinese, including Tiktok, on national security grounds. India has also tightened the foreign investment rules for countries with which it shares a ground limit.

    The external explosion of pagers in Lebanon last year, who reported Reuters, was executed by Israeli agents who focus on Hezbollah, further Indian worries about the potential abuse of technical devices and the need for quickly testing CCTV equipment, said the high Indiase officaris.

    The camera test rules do not contain a clause on land borders.

    But last month the Xiaomi of China said that the Indian officials then registered the testing of CCTV devices could not continue the company because “internal guidelines” required Xiaomi that they would provide more registration data of two contract manufacturers based in China.

    “The TestLab indicated that this requirement applies to applications that come from countries share a country border with India,” the company wrote in an e -mail of 24 April to the Indian agency that supervises the testing of Laboratory.

    Xiaomi did not respond to questions from Reuters and the IT ministerie has not answered any questions about the company's account.

    The Chinese Ministry of Foreign Affairs said Reuters that opposed the “generalization of the concept of national security to lubricate and suppress Chinese companies”, and hoped that India would offer a non-discriminatory environment for Chinese companies.

    Laboratory tests, factory visits

    While CCTV equipment delivered to the Indian government has had to be tested since June 2024, the broadening of the rules for all devices has increased the deployment.

    The public sector accounts for 27% of the CCTV question in India, and company customers, industry, catering establishments and houses the remaining 73%, according to contrapunt.

    The rules require that CCTV cameras have sabotage resistant enclosures, strong malware detection and coding.

    Companies must perform software tools to test the source code and to provide reports to government laboratories, said two managers in the camera industry.

    With the rules, laboratories can ask for source code if companies use their own communication protocols in devices, instead of standard, such as Wi-Fi. They also enable Indian officials to visit device makers abroad and to inspect facilities for cyber fortresses.

    The Indian unity of the Chinese Infinova said that the Ministry of Officers were creating the requirements last month.

    “Expectations such as sharing source codes, the retest of post -firmware -upgrades and multiple factory audits have a significant influence on internal timelines,” said Infinova Sales Executive Sumeet Chanana in an e -mail on 10 April. Infinova did not respond to Reuters questions.

    The same day, Sanjeev Gulati, director of India for Vivotek in Taiwan, warned Indian officials that “all current projects will stop.” He told Reuters this month that Vivotek had submitted product applications and hoped to “get permission quickly”.

    The body that investigates surveillance clothing is the directorate standardization tests and quality certification of India, which falls under the IT ministery. The agency has 15 laboratories that can revise 28 applications, according to data on its website that has been deleted after Reuters has sent questions. Each application can contain a maximum of 10 models.

    From 28 May, 342 applications for hundreds of models from different manufacturers were processed, according to official data. Of these, 237 were classified as new, with 142 submitted since the Deadline of 9 April.

    Tests were completed at 35 of those applications, including only one of a foreign company.

    The CP Plus from India told Reuters that it had received approval for his flagship cameras, but a number of models were still waiting for certification.

    Bosch said it had also submitted devices to test, but asked that the Indian authorities “allow business continuity” for those products until the process is completed.

    When Reuters visited the bustling Nehru Place Electronics market from New Delhi last week, the boards were stacked with popular CCTV cameras from Hikvision, Dahua and CP Plus.

    But Sagar Sharma said that the income in his CCTV store this month had fallen around 50% from April due to the slow pace of government goods inspections for security cameras.

    “It is not possible to meet large orders now,” he said. “We have to survive with the stock we have.”

    (Reporting by Aditya Kalra; Additional reporting by Shivangi Acharya and Anushree Fadnavis in New Delhi, and Munsif Vengattil in Bengaluru and Brenda Goh in Shanghai; Edit by David Crawshaw))