Counterfeit goods continue to remain deeply embedded in India’s consumer markets, with about 35% of urban consumers reporting that they encountered fake products in the past year, according to the State of Counterfeiting in India 2025 report released jointly by the Authentication Solution Providers' Association (Aspa) and Crisil. 

The report, launched at the TAF Connect 2026 industry conclave, also found that nearly nine out of ten urban consumers—about 89%—have purchased a counterfeit product at least once in their lifetime, underscoring the scale of the challenge across India’s retail ecosystem. 

Based on a survey of 1,639 respondents across nine major cities—Delhi, Mumbai, Chennai, Bengaluru, Hyderabad, Kolkata, Ahmedabad, Jaipur, and Indore—the study highlights growing exposure to counterfeit goods across sectors such as pharmaceuticals, FMCG, automotive components, apparel, consumer durables, and agro-products. 

Consumers estimate that nearly 29% of products available in local markets could be counterfeit, while 74% believe that the incidence of fake goods in their region has increased over the past year. 

Highlighting key insights from the study, Anjali Nathwani, Director, Crisil Intelligence,  said, “An important finding from the survey is that 74% of consumers believe the incidence of counterfeiting has increased in the last 12 months. Another intriguing finding is that 93% of consumers think more awareness campaigns are needed, even though two-thirds feel confident about identifying a counterfeit product.” 

Apparel and FMCG among most affected sectors 

The report identifies apparel as one of the sectors most exposed to counterfeiting, with 31% of consumers saying they encountered or purchased counterfeit clothing in the past 12 months. The prevalence of fake fashion products is visible across both online and offline retail channels. 

Daily-use consumer goods are also increasingly affected. About 27% of respondents said they encountered counterfeit FMCG products such as packaged food, personal care items and household products during the past year. 

Counterfeit automotive components were reported by 22% of consumers, raising safety concerns in the vehicle replacement market where fake spare parts can compromise performance and reliability. 

The consumer durables segment, which includes appliances and electronics, is also seeing rising counterfeit exposure. Around 18% of respondents reported encountering fake products in this category, with more than half of such purchases taking place through online channels. 

Pharmaceutical counterfeiting remains a major public health concern. The report estimates that counterfeit medicines account for roughly 28% of the market, highlighting the potential risks to consumer safety. 

In the agricultural sector, 35% of farmers reported encountering counterfeit agro-products, while respondents estimated that close to 30% of agro-inputs available in the market could be fake. This raises concerns about crop productivity, farmer incomes and food security. 

Speaking at the event, Ankit Gupta, President, ASPA, said, “Counterfeiting is a global menace that adversely affects the economy of almost every country. Not only are counterfeit goods a risk to consumers' health and well-being, but they also distort market competition, damage legitimate producers and cause tax revenue losses for governments. In India, counterfeiting incidents have increased over the past three years, with counterfeiters becoming increasingly sophisticated and better funded. The growth of e-commerce and globalisation of markets has made the fight against counterfeiting even more challenging.” 

Online channels driving counterfeit distribution 

Digital platforms are emerging as a major distribution channel for counterfeit goods. According to the report, online aggregator platforms account for about 53% of counterfeit purchases, making them the single largest channel. 

However, traditional retail outlets continue to dominate the sale of certain products. Local shops account for 75% of counterfeit agro-product purchases and 63% of fake pharmaceutical sales. 

Social media is also becoming a key channel, particularly for apparel and consumer electronics, accounting for 46% and 35% of counterfeit purchases respectively in these categories. 

Consumers willing to pay premium for genuine products 

Despite the widespread presence of counterfeit goods, the study indicates that consumer attitudes are gradually shifting. 

Counterfeit products are perceived to be about 22% cheaper than genuine items, yet only 36% of consumers cited lower price as the primary reason for purchasing them. Many buyers are now showing greater preference for authenticity and product safety. 

On average, consumers said they are willing to pay about 9% more to ensure that a product is genuine. The willingness to pay a premium is higher in sensitive categories such as pharmaceuticals (12%) and agro-products (14%). 

Encouragingly, half of the respondents said they would file a complaint if they received a counterfeit product, reflecting growing awareness and intolerance toward fake goods.