The numbers
In a decisive move, the Indian government will enforce a total ban on the sale of non-certified internet-connected CCTV cameras from Chinese manufacturers starting April 1, 2026. This policy aims to bolster national security and promote domestic manufacturing, effectively shutting out major players like Hikvision and Dahua, who collectively held one-third of the Indian market until 2024.
The new regulations come as part of the Standardisation Testing and Quality Certification (STQC) rules, which the government has implemented to ensure that products made in China or those using Chinese chipsets cannot be certified. This shift has already led to a remarkable transformation in the market, with Indian companies now controlling over 80% of the CCTV market as of February 2026.
CP Plus, a domestic manufacturer, has seen its market share surge to an impressive 45-50%, a significant increase from the 20-25% it commanded before the regulations were put in place. This rapid growth underscores the effectiveness of the new policy in promoting local businesses and reducing reliance on foreign technology.
Meanwhile, Dahua Technology has faced a staggering contraction of 80% in its business, now limited to selling obsolete analog cameras. The fallout from this ban is palpable, as the shift away from Chinese suppliers has resulted in increased costs, with a 15-20% rise in the bill of materials (BoM) for manufacturers. This increase reflects the challenges domestic companies face as they ramp up production to meet the growing demand.
Despite these changes, existing installations of affected CCTV systems are not expected to face immediate disruption, allowing businesses and consumers to continue using their current equipment without concern. However, the compliance requirements under the new regulations are stringent, particularly around the disclosure of components and software integrity, as noted by a senior executive at a domestic electronics firm.
Industry analysts have observed that this policy has accelerated the shift towards indigenous manufacturing, indicating a long-term commitment by the Indian government to foster local industries. The move is not just about security; it’s a strategic pivot towards self-reliance in technology.
As the ban approaches, observers are keenly watching how the market will adapt to these new realities. The full impact of this policy remains to be seen, but it is clear that the landscape of surveillance technology in India is undergoing a profound transformation.
