The menace posed by counterfeit products such as auto parts and packaged foods was highlighted at a seminar on combating duplicates of popular brands held here today.
Speakers at the event discussed various aspects of the counterfeit problem, including the government incurring losses running into thousands of crores, apart from health hazards.
The meet - 'Combating Counterfeiting and Smuggling An Imperative to Accelerate Economic Development' was organised by Federation of Indian Chamber of Commerce and Industry's (FICCI) Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (CASCADE).
Advisor, FICCI, CASCADE, P C Jha said the estimated loss to the industry in sectors including alcoholic beverages, auto components, computer hardware, FMCG packaged foods and FMCG personal goods, mobile phones and tobacco had increased by Rs 32,412 crore between 2011-'12 to 2013-'14.
To the government, the loss increased by Rs 13,049 crore during the same period, he said.
The loss to the industry due to the grey market in 2011-'12 was Rs 72,969 crore and in 2013-'14 it was Rs 1,05,381 crore, Jha said.
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Nearly, 20 per cent of road accidents were due to counterfeit auto parts which resulted in 25,000 deaths and more than 93,000 injuries annually, while 50 per cent of fatal accidents were due to fake auto parts, Jha said.
Additional Director General of Police, K Jayanth Murali said the market for fake and smuggled products was one of the biggest challenges.
Speaking on fake Indian currency notes, he said more than 50 per cent of it came through Nepal and the rest from destinations including Bangladesh.
He also referred to some instances where fake notes were routed through Thailand, Malaysia and Sri Lanka. A "ship from China to India was having counterfeit currency notes," he said without elaborating.
Commissioner of Customs, R Srinivasa Naik said unless brand owners registered with the department they could not detect violations when fake brands were imported adding about 1,000 brands had registered with them.
Terming counterfeiting a "menace," he said it resulted in economic losses which included those for the government and industry, and yet there was a demand for cheaper products from toys to aeroplane parts.
Such counterfeiting also led to money laundering, he added.
Co-chairman, FICCI, Tamil Nadu State Council, Kavitha Dutt said the need of the hour was tangible actions to strengthen intellectual property laws to increase enforcement and punishments.
She said it was imperative to reassure legitimate business owners and consumers that the government was serious about protecting their rights.
On the factors behind consumers opting for counterfeit products, consumer activist, Nirmala Desikan said those who bought fake goods did so as they were cheaper.
On drug counterfeiting, she said at one point of time there were about 35 counterfeit products of a popular "Nimesulide" (a pain reliever) brand.
She said consumers should be alert as such fake brands were also a cause of morbidity and mortality.
Advisor, FICCI, Deep Chand said industries should cooperate with the police to ensure conviction for counterfeiters and not just stop with mere complaints.
Later, at a panel discussion, participants said consumers could not be faulted for buying counterfeited products since the prices of genuine goods were "exorbitant," when compared with fake.
A representative of a leading Indian watch-maker said police should simplify norms for identifying fake products. He said some fake products were released in a neighbouring State owing to what police termed delay in identification.
Responding, a senior police official said it would suffice to lodge a formal complaint to launch prosecution while aspects like identification or proving the case came later.
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