New Delhi has said it will let Chinese telecoms giant Huawei take part in trials for the rollout of 5G services in the huge Indian market, giving the firm a major boost as it battles US sanctions.

The US government has banned Huawei from working with US firms, calling it a security threat because of alleged close ties to the Chinese government. The company denies the accusation.

Washington, which also banned US companies from selling equipment to Huawei, had lobbied hard for India to freeze Huawei out of its 5G communications network. "We have taken the decision to give 5G spectrum for trial to all the players," India's telecom minister Ravi Shankar Prasad said late Monday.