"The report therefore recommended that imports from China be restricted to hardware such as mobile phones, laptops and USB dongles, while technology in key strategic areas such as telecoms and broadband infrastructure, security and cloud computing be obtained from other countries."
Hell, any traveling business people may someday find those devices "using a back channel to call home" if the devices go to the manufacturing country. Unless India plans on vetting chips and boards and their build blueprints, and unless India (or any country for that matter) has the technical prowess and speed to check every chip and mobo, then it is almost pointless. Maybe they can screen gear once it is unpacked, but that would be a LOT of testing. And, STILL, there is no guarantee that a chip or circuit or switch or other component doesn't have multiple, undisclosed functions embedded.
I suspect that even with VPNs, espionage chips could easily bypass them and send on a remote port. Unless the laptop or phone has. Built-in IDS and firewalls to report in real time the true clear text of anything trying to transit the phone will anyone be qualified to feel comfortable. Yet, another reason for Android phones to be rootable by default, and be rooted with ease, not complication. All users of ANY electronics deserve the right to know if they've been buggged. Of course, if one really is breaking a material law, there could be repercussions, even if one is a traveler and is using VPN in a country that bans VPN, even if the reality is that is its standard faire for any self-respecting individual or corporation or government to use VPN and other tools to try to assure privacy in communications.