Nearly 35% of Urban Consumers in India Bought Fake Products in the Last Year: Report

Counterfeit goods remain a widespread challenge in India’s consumer markets, with nearly 35% of urban consumers reporting that they purchased or encountered fake products in the past year, according to the State of Counterfeiting in India 2025 report released by Authentication Solution Providers' Association in collaboration with CRISIL Intelligence.

The report highlights the scale of the problem across sectors and channels. Alarmingly, 89% of urban consumers said they have bought a counterfeit product at least once in their lifetime, indicating how deeply fake goods have penetrated both online and offline retail ecosystems.

The nationwide survey covered 1,639 respondents across nine cities, including Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Kolkata, Ahmedabad, Jaipur and Indore.

Apparel, FMCG and Auto Parts Among Most Affected Categories

The study identified the apparel segment as the most affected category, with 31% of consumers reporting encounters with counterfeit clothing in the past 12 months. The prevalence of fake fashion items reflects the ease with which counterfeiters replicate branded designs and distribute them through both physical stores and online marketplaces.

Counterfeiting has also spread into everyday consumer goods. Around 27% of respondents reported encountering fake FMCG products, raising concerns about household products such as packaged food, personal care and home care items.

Meanwhile, 22% of consumers reported counterfeit automotive parts, highlighting safety risks associated with fake spare components in the vehicle replacement market.

The report also flagged the vulnerability of the consumer electronics and appliances segment, where 18% of respondents encountered counterfeit durable products.

Counterfeit Medicines and Agro-Products Raise Safety Concerns

The presence of counterfeit products is particularly alarming in critical sectors such as pharmaceuticals and agriculture.

The study estimates that counterfeit medicines account for roughly 28% of the market, posing serious public health risks.

Similarly, fake agro-products continue to threaten farm productivity and rural incomes. According to the report, 35% of farmers reported encountering counterfeit agro-products, while farmers estimate that nearly 30% of agro-inputs in the market may be fake.

Such products can affect crop yields, reduce farmer confidence and create broader food security concerns.

E-Commerce and Social Media Driving Distribution

Digital commerce has emerged as a major channel for counterfeit goods. The report found that online aggregator platforms accounted for 53% of counterfeit purchases, making them the largest distribution channel.

At the same time, local retail outlets remain dominant for certain sectors, including agro-products (75%) and pharmaceuticals (63%).

Social media advertisements are also becoming a significant source of counterfeit products, particularly in apparel (46%) and consumer electronics (35%).

Despite the widespread presence of fake goods, consumer attitudes are evolving. While counterfeit products are typically around 22% cheaper than genuine items, only 36% of consumers cited price as the main reason for purchasing them.

Consumers also indicated a willingness to pay an average premium of 9% for guaranteed genuine products, with higher willingness in pharmaceuticals and agricultural inputs.

Read more: Govt Looks to Cushion Airlines from Jet Fuel Price Shock Amid West Asia Conflict.

Conclusion

The findings underline the growing scale and complexity of counterfeiting in India’s consumer economy. As counterfeit products expand across industries and distribution channels, the report highlights the need for coordinated action involving government authorities, manufacturers, retailers and consumers to strengthen product authentication systems and curb the spread of fake goods.

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