Sectorwise break-up of counterfeit products

Written by fe Bureaus | Updated: Sep 15 2009, 06:53am hrs
Pharmaceuticals

Reports indicate that 15-25% of all medicines sold in India are counterfeit. The spurious drug market is estimated at INR20-60 billion in 2008 in a market of RS900 billion, including exports. Indeed, the problem is so serious that one in every three spurious drugs sold globally are said to be made in India. It is also estimated that about 38% of medicines supplied in government hospitals in India are counterfeit, and 40% of all drugs sold in India are counterfeit.

Media and entertainment

An AC Nielsen-FICCI survey in 2005 estimated Rs6 billion annual losses to the music industry, while the film industry loses close to RS20 billion to piracy.

According to another press report, the ratio of legitimate to pirated music in India is 50:50 and while the RS7.5 billion turnover of the Indian music industry is through legitimate sales, another Rs7 billion is generated from the pirated market. This implies that around 60% of films produced and 40% of music produced is copied and distributed illegally in India.

Computers and IT products

According to Manufacturers Association of Information Technology (MAIT), the counterfeit market in 2006 accounted for 12-15% of the IT peripherals market in India that is worth over Rs20 billion.

Clothing and apparel

Counterfeits of branded leather products, such as footwear and apparel, along with clothing were pegged at Rs20 billion in 2006 by various media reports.

Automotive components

According to a 2007 study conducted by the Automotive Components Manufacturers Association, fake spares constitute 35% of the replacement market that is Rs165 billion domestic market; it is worth Rs53 billion. This is likely to become an Rs 63 billion industry by 2010 and will cross Rs140 billion in 2015.

FMCG

Nearly 10-30% of the FMCG market is accounted for by fake products. Counterfeits account for a revenue loss of Rs50-80 billion annually. Also, 10% of all major soft drinks sold are spurious, while 10-30% of cosmetics and packaged food are counterfeits, as per a slew of media reports.

Gold and precious metals

Fake gold and precious metals are worth Rs60 billion in India.

Software

According to the sixth annual Global Software Piracy Study by market research and forecasting firm, IDC, and Business Software Alliance, India has managed a 1% drop in software piracy from 69% to 68% in 2008. In absolute terms, the loss still amounts to Rs121.5 billion.