India was one of the top three sources for counterfeit goods in 2011, according to the US Customs and Border Protection. The label is mainly on account of the country being the place of origin of pharma products, which the US says are not genuine.
India accounted for 3% of the $178 million worth of counterfeit goods seized by US in 2011, down from 4% of $188 million in 2010. Had the same products passed off as genuine and retailed in the US, the seized counterfeit goods would fetch $1.1 billion.
?India and Pakistan both made it to top 10 source countries this year due to seizures of counterfeit pharmaceuticals. Pharma seizures accounted for 86% of the value of IPR siezures from India and 85% of the value of IPR seizures from Pakistan,? said the US Customs and Border Protection report.
However, the share of India in the pie of counterfeit goods appears pygmied when compared with that of China’s, which has been declared by US as the origin of 62% of all counterfeit goods, and Hongkong that accounts for 18% of the goods.
Excluding pharmaceuticals, which grabbed a lion?s share of the counterfeit goods that emerged from India, consumer electronics accounted for 8%, and perfumes and colognes accounted for 5% of the total value of goods.
Although spurious pharmaceutical products originating from China constituted a mere 6% of the total worth of all fake goods from that country, the sheer value of the seized Chinese drugs are almost double the value of fake medicines being attributed to India. In value terms, 53% of such goods in 2011 arrived in US through cargo while 18% was transported through express, and 6% was delivered via mail.
The Indian government and the pharma industry have consistently challenged the label of ‘spurious drug source’ after a few bitter experiences. In 2009, samples of fake drugs labelled ‘made in India’ were picked in Nigeria by their drug regulator. Detailed investigations revealed that the drugs were manufactured and shipped from China. In another incident, EU customs authority confused genuine generic drugs from reputed Indian companies to be counterfeit and seized perfectly legitimate drugs in transit, leading to a row that became a legal wrangle at the World Trade Organization.
In a separate category created by the US, clubbed under the term ?consumer safety and critical technology?, pharma products tops the list, accounting for 28% of all goods seized in US. Among all commodities, pharma consists of 14% of all seizures, after consumer electronics and footwear, which together constituted 55% of all seized goods in 2011.