Around 20 per cent of accidents on Indian roads are caused by counterfeit automobile parts, while 30 per cent of FMCG items sold are fake, but 80 per cent of consumers still believe that they are using genuine products, according to FICCI CASCADE.
Stating that illicit products are adversely affecting Indian consumers, the industry body which is working on addressing the issue of unlawful trade activities in India, said there's an urgent need to increase not just awareness in consumer but also among lawmakers and enforcement agencies.
FICCI CASCADE (Committee Against Smuggling and Counterfeiting Activities Destroying the Economy) further said counterfeiting and illicit trade has also led to huge revenue loss to the exchequer.
"Nearly 20 per cent accidents on Indian roads are caused by counterfeit auto-products. Further in the FMCG sector, 30 per cent goods sold are fake and 80 per cent consumers believe that they are using genuine products," it said.
The existence and operation of illicit markets such as smuggling and counterfeiting has been an enduring problem that has escalated in scope and magnitude, impacting industries, government, economies and the health and safety of the consumers, it added.
FICCI CASCADE reports estimate that in India the total loss to the government on account of illicit markets in just seven manufacturing sectors is Rs 392.39 billion.
"Amongst the various sectors, the maximum revenue loss to the exchequer on account of counterfeiting and illicit trade is attributed to tobacco products, assessing a revenue loss of Rs 91.39 billion, followed by mobile phones at Rs 6705 billion and alcoholic beverages at Rs 63.09 billion," it added.