India keeps tight restriction on Chinese telecom firms

The Indian government maintains strict restrictions on Chinese telecom equipment manufacturers like ZTE and Huawei, citing security concerns. Despite ZTE’s recent proposal to partner with Celkon Resolute to manufacture routers in Andhra Pradesh, the government’s stance remains unchanged. This is due to the National Security Directive, which prohibits using equipment from ‘non-trusted sources’ in India’s telecom networks, effectively barring these companies from participating in the 5G rollout and limiting their involvement in existing networks.

The ‘trusted sources’ policy enforced by the National Cyber Security Coordinator (NCSC) is central to the issue. ZTE and Huawei still need to meet the stringent compliance requirements, which include detailed disclosures about their operations and products. As a result, they remain excluded from India’s telecom projects. The Department of Telecommunications (DoT) has also asked operators to assess and report the use of non-trusted equipment in their networks, further limiting these companies’ prospects.

Although ZTE can manufacture consumer Wi-Fi equipment in India, these products can only be used in telecom networks with NCSC approval. The ZTE-Celkon partnership has stalled due to a lack of progress and clarity from the government. Despite some recent relaxations for Chinese companies in other sectors, the telecom equipment industry remains tightly regulated, with little chance of relief for ZTE and Huawei amid ongoing geopolitical tensions and cybersecurity concerns.