Fake products cause Rs.100,000 crore loss to industry: FICCI
Counterfeit and smuggled products and tax evasion caused an annual sales loss of Rs.100,000 crore to the Indian industry, a study by the Federation of Indian Chambers of Commerce and Industry (FICCI) showed Wednesday.
New Delhi: Counterfeit and smuggled products and tax evasion caused an annual sales loss of Rs.100,000 crore to the Indian industry, a study by the Federation of Indian Chambers of Commerce and Industry (FICCI) showed Wednesday.
The report was released on World Anti-counterfeiting Day.
According to the FICCI CASCADE (Committee against smuggling and counterfeiting activities destroying the economy) report, the sale of counterfeit and smuggled products and tax evasion in seven key sectors that include auto, fast moving consumer goods (FMCG), alcohol and tobacco, resulted in a loss of Rs.26,190 crore loss to the exchequer in 2012.
The study on the "socio-economic impact of counterfeiting, smuggling and tax evasion in seven key industry sectors" has pegged the annual sales loss to industry due to circulation of fake products at Rs.72,969 crore.
The seven sectors covered under the study were - auto components, alcohol, computer hardware, FMCG (personal goods), FMCG (packaged foods), mobile phones and tobacco.
This estimate does not include the loss to pharmaceutical and other FMCG sectors.
However, a rough estimate based on limited assessment demonstrates a loss of Rs.29,307 crore from pharmaceutical and other FMCG sectors, said the FICCI CASCADE statement.
Government on its part said that consumer awareness is key to stem the sale of counterfeit and smuggled products which are potentially harmful to the personal health and financial stability of the country.
"The consumer needs to be made aware of the risks of buying these (counterfeit or smuggled) goods that are dangerous to their health and a risk to their safety," Pankaj Agarwala, secretary, department of consumer affairs, said at an event here organised by FICCI CASCADE .