Indian CCTV firms likely to benefit from U.S.-China direct trade war

The Hindu

26-04-2025

The trade war between the United States and China is expected to create business opportunities for Indian CCTV makers to export to the U.S., which is perhaps the biggest market for the device in terms of value. Though the U.S. had banned Chinese made CCTV cameras in government procurement due to allegations of cybersecurity violations, the private sector sourced them. But this might decline due to steep tariffs.
'With this trade war going on between China and U.S., it brings in a huge opportunity for domestic manufacturers like us for even exporting to U.S.,' said Sanjeev Sehgal, Founder & Managing Director, Sparsh CCTV, among top three players in the segment.
'We are working hard toward how we can get maximum benefit out of it,' Mr. Sehgal told The Hindu.
'Because there is no clarity now, we need to see once all the things settle down and take a decision. So, we are seeing a good number of inquiries coming from U.S.,' he said.
To start with, the firm would export to the U.S. and depending on the opportunity, it may set up a manufacturing unit there.
Sparsh CCTV has already set up a subsidiary in the U.S. and is establishing a joint venture in Saudi Arabia to expand into those key markets.
Expected surge
The company, which started focusing on exports since January this year, is expecting its exports volume to surge from 1-2% of the turnover now to about 20% this fiscal year.
India's decision to keep Chinese CCTV companies out of the domestic market by making it mandatory for suppliers to have Standardisation Testing and Quality Certification (STQC) is expected to benefit local firms ike Sparsh, which is the first entity to get such a certification. This requirement has come into force from April 9, 2025.
New norms
'After the 9th of April, all CCTV cameras to be sold in India have to be certified as per the new BIS ER norms. So, only those CCTV cameras approved by BIS can be sold, hired, stored, or even given on lease in India,' Mr. Sehgal said.
'Which is basically the ER testing and certification from STQC, which is the testing standards and certification body under the Ministry of Electronics,' he added.
Railways contract
Stating that the government policy has started benefiting Indian firms, he said, 'We have got some major successes out of it. One of the major successes is railways. So, we are doing at almost 5,000 railway stations across India.'
He said this regulation and export opportunity to the U.S. would lead to a 100% growth in the company's volumes this year.
'We believe that we should minimum grow by 100%, because with this new regulation coming in, most of the Chinese brands will not be able to get the certification. Because they [BIS] are asking for the source code and everything,' he said.
Chinese control
Chinese firms control 75% of India's estimated ₹12,000 crore CCTV market, which is growing at a CAGR of 20%.
To cater to the demand, the company will be investing ₹300 crore in three years to expand capacity. This is projected to grow over 10 times from 1 million units a year to 1 million units a month in three to four years Mr. Sehgal said.