The Indian government has entered into a sharp and open regulatory confrontation with major global technology companies after proposing a stringent package of 83 new security standards binding on smartphone manufacturers. This package includes unprecedented demands in the history of the technology industry, most notably requiring companies to share their source code with government agencies and to notify the government in advance of any major software updates before releasing them to users.
Strategic market under scrutiny
This bold move comes as part of New Delhi’s relentless efforts to bolster digital sovereignty and user data security in the world’s second-largest smartphone market, boasting a massive user base exceeding 750 million. These actions are particularly significant given India’s drive to establish itself as a global manufacturing hub, replacing China, under its “Make in India” initiative. Compliance with these standards presents a dual challenge for companies that rely on the Indian market for both growth and manufacturing.
Business concerns: Trade secrets at risk
According to Reuters, these proposals have been met with fierce opposition from a coalition of industry giants including Apple, Samsung, Google, and Xiaomi. These companies argue that the Indian requirements exceed international standards and that disclosing source code poses an existential threat to their trade secrets and intellectual property rights, potentially exposing their security systems to hacking rather than protecting them.
The fundamental point of contention
The most controversial clause in the proposed document concerns access to source code. It stipulates that software undergo a comprehensive security assessment, allowing local Indian labs to review and analyze the code to verify it is free of vulnerabilities or backdoors. In an internal document, the Indian Technology Industry Association described this requirement as practically "unfeasible," noting that major economies in the European Union and North America do not impose such stringent restrictions.
Historical and political context of the crisis
These moves cannot be separated from the broader political and security context in India, where Prime Minister Narendra Modi's government has adopted strict digital protectionist policies, particularly after border tensions with China in 2020, which led to the banning of hundreds of Chinese apps under the pretext of protecting national security. Observers believe the new standards are an extension of this policy, through which India aims to tighten its grip on domestic cyberspace and prevent any foreign influence that might be transmitted via smart devices.
The government's response and the future of negotiations
For his part, the Secretary General of India’s Ministry of Information Technology, S. Krishnan, attempted to allay concerns, emphasizing that the government would address companies’ concerns “with an open mind,” and describing the current objections as premature. In a tactical retreat, the ministry later issued a statement denying that it had explicitly requested “source code,” indicating that consultations were still underway to formulate a balanced regulatory framework. Crucial meetings are scheduled between ministry officials and company representatives to reach a consensus that will prevent disruptions to the Indian market that could affect global supply chains.
