1. Counterfeit goods real challenge to ‘Make in India’: Report

Counterfeit goods real challenge to ‘Make in India’: Report

Production of low-quality counterfeit goods has the potential to significantly undermine the 'Make in India' programme that seeks to establish the country as a global manufacturing hub, a report has said.

By: | Published: August 31, 2015 11:10 PM

Production of low-quality counterfeit goods has the potential to significantly undermine the ‘Make in India’ programme that seeks to establish the country as a global manufacturing hub, a report has said.

The counterfeit market is growing at a rate of 44 per cent per annum and has touched Rs 1.05 lakh crore in size in 2014, according to ‘Sell SMART’ report by industry body FICCI and consultancy firm KPMG.

As a consequence, since 2010, India has been on the US’ `Priority Watch List’ of countries more exposed to IPR (intellectual property rights) violations globally, it said.

Alcohol, consumer packaged goods, personal care products, tobacco, mobile and mobile components, auto parts and computer software and hardware are the sectors that are most prone to counterfeiting, the report said.

It added, of the total bogus goods sold in the country in 2014, FMCG, alcoholic beverages and tobacco accounted for a staggering 65 per cent.

Production of low-quality counterfeit goods has the potential to significantly undermine the goal of ‘Make in India’ programme. Counterfeiting is a challenge to the government and its most direct impact is felt through the loss of tax revenue, the report said.

In 2014, the government lost about Rs 39,200 crore in tax collections to the counterfeit trade, an increase of 50 per cent from Rs 26,100 crore in 2012. Of this, FMCG and alcoholic beverages sectors accounted for a loss of about Rs 27,500 crore, or about 70 per cent, it added.

“Counterfeit goods is a huge issue that needs to be addressed. Counterfeiting is more prevalent in rural and semi- urban areas compared to urban areas,” KPMG Partner Rajat Wahi said.

The report said a company’s direct distribution network has a strong link to copied products as the supply gap created by lack of direct reach acts as a driver for such items.

“In case of FMCG, a retailer who is considered to be small to be economically viable to service, is forced to rely on wholesalers for merchandise purchase. With limited capital, these retailers are easily lured by the promise of low risk, high margin counterfeit goods.”

In India, 80 per cent of consumers buying counterfeit goods purchase them with the belief they are genuine, the report maintained.

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  1. Hemen Parekh
    Sep 10, 2015 at 11:36 am
    " BACK FACTORY " OF THE WORLD ? China is known as the " Factory " of the World India is known as the " Back Office " of the World Can India become the " Back Factory " of the World ? Wrong question ! Right question is : WHEN can we become the " Back Factory " of the World ? Answer is " hiding in plain sight " ! This week , an astronaut , sitting in a satellite 400 km above the earth and hurtling through space at 16,000 km per hour , operated a robot on the earth Earlier , scientists sitting in NASA space centre or in Shri Harikota space centre , have operated Mars Rovers / MOM ( Mars Orbital Mission ) remotely From a distance of millions of miles And soon , astronauts will be sending emails to earthlings from millions of miles away , using " Space Internet " on their Mobile phones Invariably , each such team of scientists , comprised Indians ! So , WHEN can our scientists - and software Start Ups - enable Indian workers , sitting in Hyderabad / Chennai etc , to operate / manite , machinery in factories of Europe / America / China ? I believe this can become a reality by 2020 , if Central Government and State Governments , just get out of the way of our scientists / Start Ups and leave them alone ! Then tell them : [ " You are our next generation of Freedom Fighters . Free our millions from poverty / starvation / jobless depression / ignominy / suicides Like war - ravaged people of North Africa , Indians cannot invade Europe / Australia / Canada , in search of jobs / better life We depend upon you to bring the jobs to India - jobs such as , * Operating Machinery in Factories abroad * Controlling Air Traffic at Airports around the World * Operating upon patients in Hospitals , all over * Teaching students in Schools , in remote Africa * Any job that currently requires immediate presence of a worker And , if you set up a " Back Factory " , you don't need to pay Corporate Income Tax for next 10 years ! Simply register on web site of Income Tax Department as a " Back Factory " owner and file annual " Zero Corporate Tax Return " ] When this happens , > Millions of skilled Indian workers will operate factories around the World , sitting in , internet connected " Back Factories " in small Indian towns > Foxconn will not need to replace its high-wage Chinese workers with one million robots ( as officially announced sometime back ) At half the wages of those Chinese workers , Indians will operate Foxconn factories , all over the World , remotely ! > " Contract Labour Act " will need to be replaced with " Back Factory " Act > " Minimum Wages Act " will need to be sped ! > India will not need to fight with WTO on " Manpower / Service Exports " > " Make in India " will morph into " Make from India " I hope NDA Ministers and members of NITI Aayog will ask , Narayan Murthy / Sam Pitroda / Azim Premji / Sundar Pichai / Satya Nadela / Ray Kurzweil etc : " How soon can this be done ? How can you help ? " ------------------------------------------------------------------------------ hemen parekh 10 Sept 2015 B2BmessageBlaster

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