Crackdown on counterfeit: How to curb the flood of fake products in Indian markets
A recent study reveals that counterfeiting in India accounts for 25-30% of the market, impacting sectors like pharmaceuticals, FMCG, and apparel. Consumers are largely unaware of purchasing fakes, posing significant health and safety risks. The article explores the extent of the problem, its impact on various industries, and potential solutions, including stronger enforcement of existing laws and increased consumer awareness.
New Delhi: Counterfeit products are flooding the Indian markets and the proliferation of fake items -- mostly cosmetics and pharmaceuticals -- has grown in recent times. A 2024 consumer perception study, carried out in collaboration between ASPA and CRISIL, has revealed worrying findings, revealing that counterfeiting accounts for a significant 25-30% of the market (State of Counterfeiting in India 2022).
This problem, which has far-reaching consequences, is prevalent in key sectors like Pharmaceuticals, Agri-products, Apparel, Automotive, FMCG, and Consumer Durables. The study further uncovered a disturbing fact — nearly 27% of consumers were unaware that the products they bought were counterfeit at the time of buying it.
The proliferation of fake goods poses a massive threat to consumer safety; it also harms brand reputations, spawns unfair competition, and causes significant economic losses. Since its fallout is widespread, it has emerged as a growing concern for not just consumers, but regulators as well.
Which are the sectors most hit
The problem of fake products in India is pervasive. Counterfeiting is particularly rampant in certain sectors, with Apparel (31%), FMCG (28%), and Automotive (25%) at the top, a study pointed out. Pharmaceuticals (20%), Consumer Durables (17%), and Agrochemicals (16%) are also badly hit by the fakes.
Despite government measures, counterfeit products continue to impact the pharmaceutical sector. Fake medicines, starting from painkillers to life-saving drugs, risks public health. Counterfeit versions of generic drugs find their way into the market and this is a major cause for concern. In recent times, fake nutritional supplements and vitamins are also flooding the market.
A large number of counterfeit electronic goods are also inundating the market. These include fake mobile phones, chargers, and accessories. Counterfeit computer components like hard drives, motherboards, and memory chips are being offered at lower prices, leading to product malfunctions and the risk of data loss for consumers.
Fake automobile parts, including brakes, tyres, and safety equipment, can also be found in every market of India. Counterfeit luxury clothing, footwear, and accessories — often imitating international brands — are widespread in India. Fake beauty and skincare products are also becoming an increasing concern. Counterfeit makeup, lotions, and perfumes can pose serious risks to skin health and overall well-being. FMCG (Fast-Moving Consumer Goods) like shampoos, soaps, deodorants, and other personal care items are faked frequently.
Other fake items found in Indian markets include bottled water, cooking oils, and milk products. In local markets, counterfeit spices, grains, and rice are rampant. Fake luxury goods — handbags, watches, and jewellery — are also prevalent, along with counterfeit cleaning products, air fresheners, and kitchen appliances, all of which pose risks to consumer health and safety.
Well-known shoe, sneaker, and sandal brands are also being replicated and sold as originals at lower prices in Indian markets. Counterfeit toys also pose hazard to children. Educational books and study materials are frequently targeted by counterfeiters. Medical devices are also
How can this be checked
The Consumer Protection Act and the Prevention of Food Adulteration Act are meant to ensure consumer safety. The Trademarks Act, the Copyright Act, and the Customs Act of 1962 also envisage a similar goal. However, they are not being enforced effectively. The offenders use the legal loopholes. Therefore, it is important that these loopholes are plugged.
Most consumers go for counterfeit products as they are sold at a lower price. Public awareness about the inherent risks in buying these products is necessary. Buying from trusted sources has to be encouraged. People must be told to check the packaging, labelling and price of each product before buying them. Consumers should verify that products bear the BIS (Bureau of Indian Standards) marks, FSSAI (Food Safety and Standards Authority of India) licenses, or drug regulatory approvals, such as those from CDSCO, to ensure their authenticity and safety. Many brands now include unique features such as QR codes, holograms, or serial numbers, which can be verified through their websites or apps.
Counterfeits are also being easily sold on e-commerce platforms. There has to be a watchdog that takes steps to curb counterfeit products, fake listings on these platforms. Consumers should be cautious of online reviews that appear too positive without providing specific details.
The government is tightening its noose on counterfeit goods, especially in the pharmaceutical, food, and electronics sectors, and is strengthening enforcement by imposing strict penalties on counterfeiters. A unified national strategy must be devised to crackdown on counterfeits.