Nearly 35% of Urban Indians Encountered Fake Products in the Past Year: Report

Counterfeit goods continue to flood Indian markets, touching everything from fashion and electronics to medicines and farm inputs.

A new nationwide study reveals that fake products are far more common than many consumers realise, with millions encountering them across both physical stores and online marketplaces. The findings come from the “State of Counterfeiting in India 2025” report released by the Authentication Solution Providers' Association in collaboration with CRISIL Intelligence.

The study highlights not only the scale of the problem but also how digital commerce and social media are accelerating the spread of counterfeit goods.

The study highlights not only the scale of the problem but also how digital commerce and social media are accelerating the spread of counterfeit goods.

How Widespread Are Counterfeit Products in India?

Nearly 35 per cent of consumers in India reported encountering fake products in the past year. Even more strikingly, almost nine out of ten urban consumers — about 89 per cent, admitted to having purchased a counterfeit product at least once in their lifetime, according to the report.

The nationwide study surveyed 1,639 respondents across nine major cities including Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Kolkata, Ahmedabad, Jaipur, and Indore. The findings point to the growing scale and evolving nature of counterfeit trade across multiple sectors.

Which Products Are Most Frequently Counterfeited?

The apparel sector emerges as one of the worst-hit categories. About 31 per cent of consumers said they had encountered or purchased fake clothing within the past year, highlighting the widespread presence of counterfeit fashion items across both online and offline markets.

Counterfeiting is also increasingly visible in everyday consumer goods. Around 27 per cent of respondents reported encountering counterfeit fast-moving consumer goods (FMCG) such as packaged food, personal care products and household items.

Automotive spare parts are another vulnerable segment, with 22 per cent of consumers reporting fake components in the replacement market. Meanwhile, the fast-growing appliances and electronics category is also affected, with 18 per cent of consumers encountering counterfeit durable products. More than half of these exposures occur through online channels.

Perhaps most concerning is the pharmaceutical sector, where counterfeit medicines are estimated to account for roughly 28 per cent of the market, raising serious public health concerns.

How Are Online Platforms Fueling the Spread of Counterfeit Goods?

The report highlights the expanding role of digital platforms in distributing fake products.

Online aggregator platforms account for 53 per cent of counterfeit purchases, making them the largest distribution channel. Social media advertising is also becoming a powerful tool for counterfeit sellers, particularly in categories such as apparel and electronics.

Local retail outlets still dominate certain sectors, however. About 75 per cent of counterfeit agro-products and 63 per cent of fake pharmaceuticals are purchased through traditional retail channels.

What Are the Risks for Farmers and Consumers?

Counterfeit agricultural inputs pose a major threat to India’s farming sector. The study indicates that 35 per cent of farmers have encountered fake agro-products, while farmers estimate that nearly 30 per cent of agro-inputs available in the market may be counterfeit.

Such products can reduce crop yields, undermine farmer trust and ultimately affect food security.

Meanwhile, consumers face risks ranging from poor-quality products to serious health hazards in the case of counterfeit medicines.

Are Consumer Attitudes Toward Counterfeits Changing?

While fake goods are often associated with lower prices, the study suggests that consumer attitudes are evolving. Counterfeit products are typically perceived to be about 22 per cent cheaper than genuine goods, yet only 36 per cent of consumers cite price as the primary reason for purchasing them.

In fact, many consumers appear willing to pay more for authenticity. On average, respondents said they would pay a 9 per cent premium for guaranteed genuine products, with even higher willingness in pharmaceuticals and agricultural inputs.

About half of the consumers surveyed also said they would file a complaint if they received a fake product, reflecting rising awareness and lower tolerance for counterfeit goods.

What Are Experts Saying About the Rising Counterfeit Problem?

Speaking at the event, Ankit Gupta, President of the Authentication Solution Providers' Association, highlighted the growing sophistication of counterfeit operations.

“In India, counterfeiting incidents have increased over the past three years, with counterfeiters becoming increasingly sophisticated and better funded. The growth of e-commerce and globalisation of markets has made the fight against counterfeiting even more challenging. At ASPA, we believe that by bringing this issue to industry and government forums, we contribute meaningfully to this fight.”

Anjali Nathwani, Director at CRISIL Intelligence, also pointed to growing consumer concern.

“An important finding from the survey is that 74 per cent of consumers believe the incidence of counterfeiting has increased in the last 12 months. Another intriguing finding is that 93 per cent of consumers think more awareness campaigns are needed, even though two-thirds feel confident about identifying a counterfeit product.”

“This gap between awareness and action points to the need for concerted effort from the government, manufacturers, distributors, retailers and consumers working together to combat counterfeiting,” she added.

(With inputs from ANI)