Huawei, China's telecoms equipment maker, has complained that India is withholding contracts to the company over unfounded security concerns.
The security issue was one of the biggest stumbling blocks that led to the company's failure to acquire US competitor 3Com and win any major contracts in the US.
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Last month, media reports said India's state-owned BSNL had dropped Huawei from a shortlist of suppliers in the regions closest to Pakistan.
The move was believed to be prompted by an Indian Intelligence Bureau report that said Huawei could not be trusted with the telecom expansion in the sensitive region.
The company's India sales head Vikas Dewan said although the tender was ongoing, he was concerned about reports that Huawei would constitute a security risk, according to the Financial Times.
Dewan said the unfounded allegations were emerging in India as they had done in the US because Huawei is now getting big enough to challenge its biggest competitors in the region.
According to industry analysts, India accounted for almost 11% of Huawei's $18.3bn global revenues for 2008.