India’s Counterfeit Crisis: 28% of Pharma Market Impacted as Online Sales Surge
A new report by ASPA and CRISIL reveals that 35% of Indian consumers encountered counterfeit goods in the past year, with online platforms driving 53% of these transactions. The pharmaceutical sector is particularly hard-hit, with fake medicines estimated to comprise 28% of the market, posing significant public health risks.
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Healthcare briefing
Key takeaways
- A new report by ASPA and CRISIL reveals that 35% of Indian consumers encountered counterfeit goods in the past year, with online platforms driving 53% of these transactions.
- The pharmaceutical sector is particularly hard-hit, with fake medicines estimated to comprise 28% of the market, posing significant public health risks.
- Abhinav Singh (in)
- Anilast Updated (in)
In this briefing
Mentioned
Key Intelligence
Key Facts
- 135% of Indian consumers encountered counterfeit products in the last 12 months
- 289% of urban consumers admit to purchasing a fake product at least once in their lifetime
- 3Counterfeit medicines are estimated to account for 28% of the Indian pharmaceutical market
- 4Online platforms are responsible for 53% of all counterfeit product purchases
- 5The study surveyed 1,639 respondents across 9 major Indian cities including Delhi and Mumbai
| Sector | ||
|---|---|---|
| Apparel | 31% | High prevalence in both online and offline markets |
| Pharmaceuticals | 28% | Critical public health risk and treatment failure |
| FMCG | 27% | Contamination in daily-use household and food items |
| Automotive Parts | 22% | Safety hazards due to sub-standard spare parts |
| Consumer Durables | 18% | High exposure through online retail channels |
Who's Affected
Analysis
The release of the State of Counterfeiting in India 2025 report at the TAF Connect 2026 conclave has sent shockwaves through India’s retail and healthcare sectors. Jointly authored by the Authentication Solution Providers' Association (ASPA) and CRISIL Intelligence, the study reveals that over a third of Indian consumers encountered counterfeit products in just the last twelve months. Perhaps most startling is the revelation that 89% of urban consumers—nearly nine out of ten—admit to having purchased a counterfeit item at least once in their lifetime. This data underscores a deeply entrenched shadow economy that is increasingly leveraging digital infrastructure to reach unsuspecting buyers across nine major metropolitan hubs, including Delhi, Mumbai, and Bengaluru.
Within the healthcare and pharmaceutical sectors, the findings are particularly alarming. Counterfeit medicines are estimated to account for approximately 28% of the total pharmaceutical market in India. This is not merely a financial loss for legitimate manufacturers; it represents a critical public health crisis. Fake drugs often lack active ingredients or contain toxic substitutes, leading to treatment failure or even death. The rise of online pharmacies and e-commerce platforms has exacerbated this issue, with the report noting that online channels now account for 53% of all counterfeit purchases. This shift highlights a significant vulnerability in the digital health ecosystem, where the ease of setting up digital storefronts outpaces the regulatory ability to police them effectively.
Approximately 27% of consumers reported encountering fake FMCG products, including packaged foods and personal care items, while 18% faced counterfeit electronics.
The prevalence of fakes extends beyond medicine into Fast-Moving Consumer Goods (FMCG) and consumer durables. Approximately 27% of consumers reported encountering fake FMCG products, including packaged foods and personal care items, while 18% faced counterfeit electronics. The apparel sector remains the most saturated, with 31% of respondents reporting encounters with fake fashion. The common thread across these sectors is the migration of illicit trade to the internet. As India’s digital economy grows, the anonymity and reach of online platforms provide a low-risk, high-reward environment for counterfeiters to exploit consumer trust.
What to Watch
For health IT providers and pharmaceutical companies, these findings necessitate an immediate shift toward advanced authentication technologies. The industry must move beyond simple holographic stickers toward integrated track-and-trace systems, blockchain-enabled supply chains, and consumer-facing verification applications. The fact that over half of all fakes are bought online suggests that e-commerce giants and specialized health platforms must implement more rigorous vendor vetting processes and AI-driven detection tools to maintain market integrity. The report indicates that while consumer awareness is growing, the sophistication of counterfeiters is keeping pace, necessitating a more proactive technological defense.
Looking ahead, the State of Counterfeiting in India 2025 report serves as a call to action for both the private sector and regulators. As the TAF Connect 2026 conclave emphasized, brand protection is no longer just about intellectual property; it is about consumer safety and the integrity of the national economy. We expect to see increased pressure on the Indian government to tighten the Consumer Protection (E-Commerce) Rules and for brands to invest heavily in phygital security features that bridge the gap between physical products and digital verification. The battle against counterfeiting in the coming years will be won or lost on the strength of the digital authentication infrastructure and the ability of Health IT systems to secure the last mile of delivery.
Source cluster
Primary reporting
Cite This Page
"India’s Counterfeit Crisis: 28% of Pharma Market Impacted as Online Sales Surge." Healthcare Intelligence Brief, March 17, 2026. https://gethealthbrief.com/story/india-counterfeit-report-pharma-impact-2026
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|---|---|
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