Report shows counterfeit products mostly from China caused a $7 billion loss to India

The global economy bleeds $2.2 trillion because of the damage caused by the grey market which is made up of counterfeit goods, tax evasion and smuggled products. It represents 3 per cent of the global GDP in terms of statistics, but three million people in India have lost their jobs in India because of the illicit trade’s impact. Due to the grey imports, a lot of which come from China, India had lost about $7 billion between 2019 and 2020 according to trade organisation FICCI.

The report shows that while packaging and supply chain have improved, the dark web has continued to facilitate the inflow of counterfeit products from China. While launching the FICCI report, India’s former Vice President Venkaiah Naidu called illicit trade a threat to India’s national interests. Cheap knockoffs of FMCG goods including packaged foods and household necessities made up 75 per cent of the total illicit goods, with a market size of Rs 2.6 lakh crore. Apart from food, tobacco products, alcohol and counterfeit phones make up the bulk of grey imports into India.

The report compiled using the data from Annual Survey of Industries, shows that while locally manufactured smartphones have reduced the inflow of cheap copies into India, lower consumption of alcohol hasn’t stopped illicit liquor from trickling in. FICCI also called for strengthening the Jaago Grahak Jaago campaign launched in 2005, to raise awareness among consumers against counterfeit goods.