India Set to Restrict Chinese Vendors, Promote ‘Trusted’ IoT Modules

• Chinmay
• December 10, 2024
• India, Internet of Things
• chinese iot components, cybersecurity, india iot security, indigenous technology, IoT manufacturing, iot regulation, make in india, pos systems, Smart meters, trusted iot modules
• 0 Comments

The Indian government is laying the groundwork for a new regulatory framework to ensure that Internet of Things (IoT) modules are procured exclusively through ‘trusted sources.’ This initiative comes in response to growing concerns about the widespread use of Chinese-origin components in India and their potential security risks.

S Krishnan, Secretary of the Ministry of Electronics and Information Technology (MeitY), stated, “We are working on regulations similar to those introduced for surveillance cameras. Security remains a critical concern, regardless of the source country.”

In recent months, the government has taken significant steps to bolster the security of electronic systems. These include amendments to the 2017 Public Procurement Order in April and an advisory on the information security risks associated with video surveillance systems in March. The guidelines promote the adoption of locally developed surveillance devices with mandatory certifications, ensuring higher security standards.

The updated norms extend the deadline for compliance to April 9, 2025, with provisions to eliminate permissions for vendors failing to adhere to the regulations. Additionally, amendments to the ‘Electronics and Information Technology Goods (Requirement of Compulsory Registration) Order, 2021’ further strengthen the security requirements for CCTV systems.

Addressing Dominance of Chinese IoT Components
Recent data from Counterpoint Research highlights the dominance of Chinese players like Quectel, Neoway, and Simcom, who hold over 80% of the global and Indian market share in IoT connectivity components. This dominance is evident in applications such as smart meters, point-of-sale (PoS) systems, routers, and asset tracking solutions.

“CCTV cameras and IoT devices share similarities in their potential to transmit data anywhere, raising security concerns,” Krishnan remarked. Consequently, the government is developing regulations to safeguard IoT components, modules, and sensors. The framework will advocate for indigenously designed, developed, and manufactured products, aligning with the Make in India initiative.

Supporting Local Manufacturing and Security
The Modi government aims to gain control and visibility across the entire IoT manufacturing chain, ensuring the deployment of backdoor-free devices to enhance user safety. This initiative is expected to empower local companies while protecting against potential cyber threats.

Despite these advancements, experts emphasize the need for a well-calibrated approach as the Indian IoT ecosystem is still maturing. According to Subhadip Roy, Analyst at Counterpoint Research, “Significant IoT shipments began in India after 2021, driven by applications like smart meters and PoS devices. However, Chinese players still dominate, contributing over 80% of India’s share.”

With IoT-driven applications expanding across sectors, the government’s focus on local sourcing and stringent security measures marks a pivotal step in strengthening India’s digital infrastructure and securing its future.