Google, Apple Are About to Face India's Security Demands

India’s relationship with the global tech industry has become increasingly fraught. This year alone, the government has banned Facebook’s free web service and declined to exempt Apple from local sourcing rules and open its own stores. Now India could force companies to use technology cooked up in a government-funded lab.

The initiative is part of a national biometric identity program called Aadhaar (Hindi for foundation). Millions of Indians use fingerprint and iris-scan authentication to access a range of public and private services that now includes banking. Failure to join the effort could limit the tech industry’s access to a vast and growing market, but companies like Apple and Google are expected to resist opening up their phones and operating systems to the Indian registration, encryption and security technology.

“There will be lots of pushing and shoving by the technology companies,” says Neeraj Aggarwal, managing director of the Boston Consulting Group in India. “It will be a battle of ecosystems, and companies will do their best to hold on to their own.”