India’s move to restrict non-certified CCTV cameras with foreign-linked components is triggering a structural reset in the surveillance ecosystem, pushing companies to rework supply chains and accelerate localisation efforts.
Large manufacturers say the transition away from Chinese-linked components has so far been manageable. Aditya Khemka, Managing Director of CP PLUS (Aditya Infotech Ltd.), said the company has diversified its chipset base and is working with partners such as Qualcomm, Ambarella and Realtek to meet regulatory requirements.
“This transition has not slowed us down but has made us stronger. It has enabled us to build a resilient and future-ready supply ecosystem,” Khemka said, adding that the company’s IP portfolio is now built on 100 per cent non-Chinese chipsets.
Source Shift
Across the industry, companies are increasingly shifting sourcing to suppliers in the US, Europe and Japan to reduce dependence on China. “We are diversifying our sourcing across Europe, the US and Japan, instead of relying on any one geography,” said Sparsh Sehgal, Chief Growth Officer at Sparsh CCTV.
However, the shift is not translating into immediate localisation. “India does not have a SoC chip manufacturer today. Startups are working on it, but for real product use, the timeline is still three to five years,” Sehgal said.
“The supply chain has to move away from China, but it cannot move to India because that capability does not exist right now,” she added, pointing to a gap in the domestic semiconductor ecosystem.
Opening Avenues
At the same time, the changes are beginning to create opportunities for Indian semiconductor startups. Shashwath TR, co-founder and CEO of Mindgrove Technologies, said the restrictions are driving demand for locally-designed silicon.
“The policy creates a structural shift in the surveillance ecosystem. It accelerates demand for secure, locally designed silicon,” he said. The company is working with Bosch to co-develop system-on-chip (SoC) solutions for applications including surveillance and smart infrastructure.
Industry executives say the push is also being driven by growing concerns around data security. “CCTV cameras are no longer just consumer products, they are becoming a critical part of a country’s defence ecosystem,” Sehgal said.
“This data, in the wrong hands, can expose a country’s critical infrastructure, which is why the entire ecosystem — from chips to cloud — has to be trusted.”
Locally Aligned
Nikul Shah, co-founder and CTO of IndiesemiC, said the move comes at a time when surveillance systems are becoming more connected and data-intensive. “CCTV systems today are no longer just recording devices; they are connected products that handle data, monitoring and access across important environments,” he said.
He added that the policy would push companies to focus more on compliance, quality and the source of technology, while also creating opportunities for Indian firms to build more secure, locally aligned solutions.
In the near term, however, the transition is expected to come at a cost. Industry players estimate a 15–20 per cent increase in prices as companies move away from a concentrated supply chain and rebuild sourcing networks.
The shift is also drawing attention to the nature of manufacturing in the sector. “CCTV has largely been an assembly business. Manufacturing is often mistaken for assembly, but the real value lies in owning the design and technology,” Sehgal said.
Building Ecosystem
Dr. Ajai Chowdhry, Co-Founder of HCL, Chairman of the Mission Governing Board of India’s National Quantum Mission, and Distinguished Fellow at NITI Aayog, observed that the ban will encourage fabless companies to invest in design of safe and secure chips.
A few fabless companies in India have already announced products to replace these chips. As soon as India gets its own fabs and packaging units, these chips can be produced.
“A ban creates a market for domestic chips. The government should announce and fund development of Indian chips to replace Chinese chips in all products and create a market for our fabs,” he added.
While companies such as CP PLUS expect Indian chip capabilities to mature over the next two to three years, enabling wider deployment in surveillance, the current phase remains one of adjustment.
For now, India’s CCTV reset is not just about cutting dependence on China — it is also highlighting the work needed to build a deeper domestic electronics and semiconductor ecosystem.