Counterfeit Crisis in India: Consumers, Consumption and Consequences

Executive Summary

Counterfeiting in India has evolved beyond an intellectual property issue into a broader challenge affecting consumer safety, market integrity, and public trust. Counterfeit medicines, food and beverages, cosmetics, electronics, children's toys, and automobile components increasingly circulate through both physical and digital marketplaces, exposing consumers to significant health, safety, and financial risks.

The report combines consumer research, sectoral evidence, and real-world case studies to examine the scale, drivers, and consequences of counterfeit consumption in India. A nationwide YouGov survey of 1,012 urban Indian consumers reveals a significant awareness–action gap. While seven in ten consumers report familiarity with counterfeit products and three in five believe they are prevalent across India, nearly 79% have purchased counterfeit products at least once, with 43% reporting that such purchases occurred unknowingly.

The findings indicate that counterfeit purchases are often driven not by deliberate preference, but by affordability, convenience, packaging similarity, social influence, and difficulty distinguishing genuine products from counterfeit alternatives. Exposure occurs across both traditional and digital channels, with street markets remaining a major source while online marketplaces increasingly contribute to unintentional purchases through platform trust and ease of access.

The consequences are substantial. More than half of respondents report that they or someone they know has experienced health or safety issues linked to counterfeit products. Allergic reactions, treatment failures, physical injuries, and toxic effects emerge as the most common outcomes, highlighting that counterfeit consumption is not merely an economic concern but a public health and consumer protection challenge.

The study further reveals a perception gap regarding criminality. Although most consumers recognise that counterfeit products can endanger consumers, fewer readily identify counterfeiting as a criminal activity or associate it with organised crime. This weakens reporting behaviour and reduces public support for enforcement interventions.

The report concludes that addressing counterfeit trade requires a coordinated, multi-stakeholder approach. Stronger intelligence-led enforcement, enhanced authentication and traceability systems, greater transparency across digital commerce platforms, and practical consumer education are essential to reducing both the supply of counterfeit goods and the demand-side conditions that enable their continued circulation.