The buzz around a supposed government order compelling smartphone companies to disclose source code has been officially shot down. India’s technology ministry labeled the circulating stories as fabrications, aiming to douse fears rippling through the $50 billion industry.
Reports had painted a dystopian picture: Major players forced to surrender closely guarded software blueprints under the guise of cybersecurity. This narrative gained traction just as India ramps up its smartphone production targets, eyeing a $300 billion electronics market by 2026.
MeitY’s response was prompt and firm. ‘These reports are inaccurate and do not reflect any government policy,’ a senior official told reporters. The ministry highlighted ongoing consultations with stakeholders on data protection frameworks, but stressed no coercive measures are on the table.
From a global perspective, such a requirement would mark a significant escalation. It mirrors tactics in some nations but clashes with India’s WTO commitments and ‘Make in India’ incentives designed to lure assemblers like Foxconn and Pegatron. Company executives, speaking off-record, expressed relief, noting that source code access could expose intellectual property to risks.
This isn’t the first time misinformation has clouded policy discussions. Last year, similar rumors preceded clarifications on VPN logging rules. With smartphone shipments hitting record highs—over 150 million units in Q1 2024—the sector craves stability. Government’s denial paves the way for smoother PLI implementations, potentially boosting local value addition from 15% to 40%.
Looking ahead, experts call for transparent policy roadmaps to prevent knee-jerk reactions. As India positions itself as a manufacturing hub, nurturing trust with tech behemoths will be key to sustaining growth amid geopolitical headwinds.