According to the report on Business Line, India government has just officially told mobile operators not to import any equipment manufactured by Chinese vendors, including Huawei and ZTE on the reason of security. The media also said that this is the first time that government has sent an order banning Chinese gear, although it had been informally telling the operators to keep away from Chinese telecom equipment before.
According to the report, the ban order follows concerns raised by India\"s Home Ministry that telecom equipment from some countries could have spyware or malware that gives intelligence agencies across the border access to telecom networks in India.

India\"s Government had earlier banned import of Chinese handsets without IMEI number. Last December, India government also decided to levy anti-dumping duty towards Chinese SDH equipments.

The ban is generally considered a big blow to Huawei, ZTE that are betting big on the Indian market, especially to ZTE who got a 50% revenue increase last year in India\"s market. Both Huawei and ZTE have hugh investment in India.

From website of department of telecom in India (http://www.dot.gov.in/), there is no lead to find the base on above report. It is still possible that the report on business line is a false report. Anyway if India government really gave such order, Chinese equipment manufacturers can sue them against free trade policy on WTO.