A note on the Counterfeiting scenario in India

1. COUNTERFEITING IN INDIA
- MR. ANIL RAJPUT, CHAIRMAN,
FICCI CASCADE
BACKGROUND
In the recent past, India’s economic growth story has attracted world’s
attention, which has brought a new set of challenges for the domestic
economy. A few of these are counterfeits, pass-offs and smuggling that
are threatening domestic brands and industry. The rapid advancement in
information communication and technology is further boosting the
growth of such illicit activities. All this is (1) Hurting the integrity of the
brand thus eroding sales of the legitimate product; (2) Undermining local
industry, Discouraging legal imports; and (3) Reducing volume of revenue
collection from duties and levies by the State.
The situation today has become worse than ever. The market for
counterfeited products is growing rapidly:
- Counterfeiting is a $650 billion a year problem
- Grown over 10,000 percent in the past two decades
Indian markets today are flooded with goods imported from all over the
world both through legitimate and illegitimate routes. An important
effect of these illegally imported goods is that they are not only causing a
loss to the national exchequer but also forcing our small and medium
industries to close down their operations thereby affecting employment
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Federation of Indian Chambers of Commerce and Industry (FICCI)

2. SOME FACTS
- It is estimated that the government loses in excess of Rs 2200 crore
(as per ACMA) a year due to sales of counterfeit auto components.
This figure is just for one sector, this problem of illicit trade prevails
in every sector be it Pharmaceuticals, Cigarettes and Tobacco,
Printer Cartridges, Alcohol etc.
- According to the Report of the FICCI-National Initiative against
Piracy and Counterfeiting:
o Share of fake/counterfeit medicines is estimated at 15 - 20% of
the total Indian market. As per some estimates, spurious drugs
worth Rs. 2500 crores annually are thrown into the market.
o For soft drinks it is at 10%
o Fake cosmetics, toiletries and packaged foods at 10-30%
o 74% of the software and 21.5% of cigarettes sold in India are
counterfeit
Much of the above estimated quantum of counterfeit goods and supply is
attributable to smuggling. However, it is not possible to quantify
smuggling and/or trading of counterfeit goods, as much of it remains un-
reported, un-detected, and at times, un-noticed as well. Still then, little
that is reported is points to an astounding problem ahead of us. For
instance, the value of seizures by the Customs over last four years from
2006-7 to 2009-10 portends a serious threat to our economic stability. The
estimated value of seizures went up from Rs. 689 crore in 2006-7, to
Rs. 1752 crore in 2009-10. Narcotic drugs, computer parts, electronic items,
machinery parts, and fabrics/yarn prominently figure in this list. In terms
of value, seizures account for approximately 1/3rd of the total detection
made by the Customs.
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Federation of Indian Chambers of Commerce and Industry (FICCI)

3. FICCI CASCADE
With this above scenario in mind, a Committee under the aegis of FICCI,
called the Committee on Anti-Smuggling and Counterfeiting Activities
Destroying Economy (CASCADE). The objective of this Committee is to
sensitize policy makers to this growing menace of contraband and
counterfeiting.
FICCI CASCADE AIMS AT
- Capacity building of Law enforcement agencies
- Discussion on legislation changes in the country
- Meeting and influencing the law enforcement authorities to create
constant awareness about the menace of counterfeit
- Enforcement of IP related laws
- Systematic dissemination of enforcement techniques, procedure and
strategy through regular workshops for the guidance of its members
- Sharing the best practices followed globally for countering the
menace of contraband, smuggled and counterfeit product
- Provide knowledge support to the industry members in tackling
counterfeit, contraband and smuggled products
COMMITTEE’S WORK
- Joint Publicity Campaign with Ministry of Consumer Affairs under
their “Jaago Grahak Jaago” umbrella to create awareness amongst
the consumer. Released in more than 160 newspapers nationally on
2nd February 2012
- Awareness campaign with Delhi Government’s “BHAGIDARI”
initiative to create awareness amongst consumers on the
seriousness of the hazards of counterfeit goods
- Commissioned an India centric research to gather reliable
information on the impact of illicit trade in counterfeit goods in
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core sectors of industry on subject
FICCI - CASCADE
Federation of Indian Chambers of Commerce and Industry (FICCI)

4. - Facilitating Interactions within Industry on information sharing and
best practices
- Awareness campaign in 100+ schools in New Delhi, though
interactions, creative competitions and rewards
We vision is to encourage every citizen to be a “CASCADER”. We also
firmly believe in the philosophy of “catching them young”. The youth of
the country are the leaders and policy makers of tomorrow. CASCADE is
soon to launch another wave of this movement amongst the young and
adolescent members of the society in the new academic year 2012-13.
FICCI CASCADE has been working at the forefront together with Industry,
Consumers and Government to generate the much-desired awareness
about this problem.
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FICCI - CASCADE
Federation of Indian Chambers of Commerce and Industry (FICCI)