Fake Products, Real Consequences: IP House - ISB Research Reveals the Human Cost of Counterfeiting in India
New IP House - ISB research reveals that most Indian consumers remain exposed to the illicit counterfeit trade in everyday transactions, with significant consequences for public safety, consumer protection, and market trust.
Nearly four in five Indian consumers have purchased a counterfeit product at least once, and over half of those purchasers did so without realizing it, according to new research from IP House and the India School of Business (ISB) Institute of Data Science. The report, Counterfeit Crisis in India: Consumers, Consumption and Consequences, examines the scale, human cost, and consumer reality of counterfeit goods in India across six high-risk product categories: medicines, food and beverages, electronics, children's toys, cosmetics and automobile parts. The research examines consumer perceptions of the links between organized crime and the manufacture, distribution, and sale of counterfeit products, and how awareness of these links reframes counterfeits from being perceived as a harmless bargain to recognized as a consumer safety and public health threat.
Drawing on a nationally distributed YouGov study of over one thousand online urban Indian consumers, alongside sector analysis and documented cases of counterfeit-related harm, the report details how fakes circulate through every mainstream retail channel. Consumers are often exposed not because they actively seek fakes, but because authenticity is increasingly difficult to judge.
According to enforcement bodies such as Interpol and Europol, counterfeiting as a lucrative illicit enterprise regularly utilized by transnational criminal networks. While 62% of respondents recognize that counterfeit products pose a serious risk to consumer health, the report found that many consumers still view counterfeiting as simply a market or economic issue rather than a pervasive form of illicit activity.
Furthermore, the findings expose a critical perception gap around criminality: only 44% initially recognize the sale of counterfeits as a crime, but once organized crime is clearly defined, 56% agree that organized criminal networks are involved in the manufacture, distribution, and sale of counterfeit products and 50% believe that increasing public awareness of organized crime's involvement is an important measure for protection consumers from counterfeits. This disconnect matters. When counterfeiting is seen merely as a cheaper substitute, the social stigma around it weakens, reporting falls, and the networks behind it can continue to operate with limited visibility.
“Every counterfeit carries a cost,” said Jan van Voorn, CEO of IP House. “The reality is that the counterfeit trade is closely linked to highly organized criminal networks that exploit global supply chains and online marketplaces. They peddle fakes for enormous profit, endangering consumers and undermining legitimate businesses. Confronting the realities of counterfeiting requires government, brands, platforms, and consumers to act together. IP House is proud to partner with ISB to bring this issue into clearer public view, because safety and trust in everyday products should never be negotiable.”
The report finds that counterfeit trade in India is:
- A illicit enterprise, in which organized criminal networks manufacture and distribute fakes globally, generating substantial profits at relatively low risk while intersecting with other serious unlawful activities.
- A public safety threat across essential goods - from medicines and food to cosmetics, toys, and auto parts - that can cause poisoning, burns, allergic reactions, fires, injuries, and, in documented cases, fatalities.
- A market challenge, with 79% of respondents reporting that they have purchased counterfeit products at least once, and 54% said those purchases were made unknowingly, demonstrating how difficult it can be for consumers to identify counterfeit products in real market conditions.
- A cross-channel consumer risk, with counterfeit purchases occurring through street markets, online marketplaces, social media, and physical retail. While consumers often associate fakes with informal markets, the report finds that convenience and trust in established platforms can lower vigilance online.
The report documents the consequences of counterfeit trade across categories that touch daily life. Methanol-laced illicit liquor has caused mass fatalities in multiple states. Counterfeit and contaminated medicines have been linked to treatment failures and child deaths. Unsafe electronics, toys, and auto parts can cause harm before consumers realize anything is wrong.
As such, the report calls for a coordinated response to counterfeiting in India, including:
- More consistent, intelligence-led enforcement across local police, customs agents, regulators, online platforms, and brand owners.
- Specialized intellectual property and consumer safety task forces for high-risk counterfeit categories.
- Consumer education that moves beyond general warnings and gives clear guidance on how to verify, avoid, and report suspected counterfeits.
About ISB Institute of Data Science
The ISB Institute of Data Science (IIDS) is an interdisciplinary research and capacity-building center applying data science, artificial intelligence, and emerging technologies to societal and economic challenges. Working at the intersection of technology, policy, and governance, IIDS collaborates with governments, industry, and global institutions across fields including cybersecurity, digital finance, misinformation, and digital piracy.
The institute produces high-impact research and policy frameworks that inform national and international decision-making, including work on the economic, security, and public safety implications of piracy and counterfeit ecosystems. Learn more about the ISB Institute of Data Science.