India clearing all lines for Huawei’s entry into India

Leading to suspicion by intelligence agencies over alleged links with PLA and fears of espionage through malicious spyware, the security establishment wants to clear all security hurdles for Chinese telecom vendors keen to “Make in India”. The government plans to create adequate testing facilities to screen Huawei’s equipments for embedded malware, ahead of clearing its proposal to set up Rs. 25-crore manufacturing facility at an SEZ in Chennai.

"The telecom/IT sector is seen as sensitive as any embedded chip or malware/spyware can compromise India's national security interests. So, while welcoming Chinese telecom companies to manufacture in India, we have to be sure that there are adequate facilities and capabilities to test the components and final product of malware/spyware," a home ministry official said, adding that department of telecom has been asked to furnish an assurance on the timeline within which such testing facilities will be in place.
In fact, these very concerns have led the US to block out Huawei.


Chinese telecom major Huawei has submitted an FDI proposal for the Chennai facility to the foreign investment promotion board (FIPB), which has approached the home ministry for security clearance. Home ministry sources said a decision on the file will be taken once the larger policy of allowing Chinese investment in manufacture of telecom and IT equipment/hardware is finalized. This policy is being drawn up by the ministry in consultation with the National Security Council Secretariat (NSCS) and intelligence agencies.


If Chinese companies are allowed to set up manufacturing facilities in India, it will not only translate into huge investments but also significantly bring down costs of telecom equipment. However, before rolling out the carpet to Chinese telecom vendors, the security agencies want adequate safeguards in place in the form of state-of-the-art testing facilities to eliminate the risk of embedded malware/spyware finding their way into the final product.

"In case they indicate that such facilities will be there in, say, a year, we can give the green signal to Huawei and other similar Chinese companies to take up manufacturing in India," said a home ministry official.

Apart from having testing safeguards, the government plans to include a clause in contracts with Chinese telecom companies, providing for termination of contract if they are found to be indulging in anti-India activities like espionage.

(image credits: stuff.tv)