India has delayed a ban on Blackberry devices for 60 days while it reviews proposals from the gadget's maker, Research in Motion.
A ban on blocking corporate email had been threatened, as India wanted greater access to encrypted services on the phones, like Saudi Arabia.
The BBC reports India wants the ability to monitor secure e-mail and instant messaging services provided by the company.
RIM has said it will support the country's need for "lawful access". But it maintains that it does not do "specific deals" with countries.
The company said earlier that it had offered to "lead an industry forum focused on supporting the lawful access needs of law enforcement agencies".
It said that the forum - which would include other telecoms companies - would work with the Indian government to develop "policies and processes aimed at preventing the misuse of strong encryption technologies".
India fears the device could be used in a repeat of the 2008 attack on Mumbai that left 166 people dead.
Blackberry handsets automatically scramble messages and send them to servers in Canada and other countries.
The United Arab Emirates was the first country to propose a block on the devices. Others include Lebanon, Algeria, Saudi Arabia and Kuwait.