India's government scrapped an order to smartphone makers on Wednesday to preload a state-run cybersecurity app on all new devices after an outcry from politicians, privacy advocates and global tech companies over surveillance fears.

Prime Minister Narendra Modi's government had privately told companies including Apple, Samsung and Xiaomi on November 28 to preload new phones with an app that cannot be deleted called Sanchar Saathi within 90 days, Reuters was first to report on Monday.

"Government has decided not to make the pre-installation mandatory for mobile manufacturers," India's communications ministry said in a press statement on Wednesday.

The move comes after protests from opposition parties over the issue, while newspaper editorials joined privacy advocates in denouncing the move. The government also found itself at odds with phone manufacturers, as Apple and Samsung had plans to not comply with the directive, sources said.

Just a day earlier, government ministers had defended the plan, saying the app only helps track and block stolen phones and prevents them from being misused.

"The app is secure and purely meant to help citizens from bad actors in the cyber world," the government said in its statement on Wednesday, saying it was backtracking because the app was gaining popularity.

Data from market intelligence firm Sensor Tower showed a 13% jump in daily downloads to 78,000 on Monday.

Political protests, privacy concerns

The u-turn will nonetheless come as an embarrassment for Modi's government, and follows a reversal last year on a laptop import licensing policy after lobbying by US officials, which would have required companies to obtain licences for shipments.

Earlier on Wednesday, senior Congress leader Randeep Singh Surjewala said in a notice to Parliament that the government needed to clarify the legal authority for "mandating a non-removable app" and called for a debate on privacy and security risks.

"The grave, serious and real apprehension is also that such compulsorily installed app can have a backdoor, thereby absolutely compromising the data and privacy of the user," he added.

Free speech rights group Internet Freedom Foundation (IFF) welcomed Wednesday's move but said it was waiting for a legal order explaining the decision.

Modi's plan had little precedent, according to industry sources. Russia may be the only other known example. Moscow in August ordered that a state-backed messenger application called MAX, a rival to WhatsApp that critics say could be used to track users, must be pre-installed on all mobile phones and tablets.

Modi has faced criticism over issues of privacy before. In 2020, his government came under fire for a COVID-19 contact-tracing app compulsory for use by office workers. That measure was later diluted to a request when privacy advocates protested.