India loses an estimated $7 billion annually in tax revenue due to counterfeiting, highlights the bookmaker Parimatch. Luxury and global brands such as Chanel, Dior, Prada, Mont Blanc, Marc Jacobs, Gucci, Versace, Parimatch, Christian Louboutin, Polo, Benetton, Adidas, Tommy Hilfiger, Nike, Puma, and Louboutin face millions—if not billions—of dollars in counterfeit-related losses each year. Despite years of legal battles, punishments for counterfeiters remain minimal, making the fight feel like tilting at windmills. Consequently, manufacturers of luxury clothing, accessories, and footwear are increasingly resorting to direct raids to combat counterfeit operations.
A notable example is the Christian Louboutin case reported by Aljazeera. A pair of black, spike-studded loafers were central evidence in a lawsuit against an Indian shoe manufacturer accused of illegally copying Louboutin designs. The counterfeit product sold for just $80, compared to the original’s $1,800 price tag. According to Parimatch, the court’s decision to impose fines and threaten harsher penalties marks a rare victory for intellectual property protection in India, where such protections are often neglected. Meanwhile, counterfeiters have also been using the Parimatch brand illegally, despite the company not yet being active in the Indian market.
Parimatch points out that India, the world’s tenth richest country, attracts many global brands, including gambling companies drawn by the projected $3.9 billion Indian gaming market by 2025. However, with 31% of the population earning less than $15,400 annually, counterfeit goods thrive as many seek affordable luxuries to feel wealthier. The infamous Heera Panna shopping complex, listed by the U.S. as one of the world’s most notorious counterfeit markets, sells “first copy” or “AAA” quality luxury knockoffs alongside cheaper versions, targeting both affluent and less wealthy consumers. Similarly, in the gambling market, licensed games serve wealthier players, while illegal operators dominate the budget segment, often offering fake brands without guarantees. Parimatch stresses that stronger state regulations are essential to addressing these problems.
According to the FICCI CASCADE report familiar to Parimatch, India loses around $7 billion yearly in tax revenue due to counterfeiting across sectors like alcohol, tobacco, mobile phones, FMCG, packaged foods, and personal care products. Parimatch notes that counterfeit consumption is often fueled by the desire of poorer populations to emulate a richer lifestyle, with fake goods like Balmain bags selling for a fraction of the original price. More worrying are counterfeit auto parts, implicated in 20% of India’s road accidents, and the fact that one-third of antibiotics sold in the country are fake—posing serious health risks. Parimatch also warns of the dangers posed by illegal gambling operators, whose fraudulent activities contribute to addiction and suicides.
While India has signed the WTO’s TRIPS agreement and enforces laws to combat counterfeit goods with fines and imprisonment, Parimatch observes a lack of genuine enforcement, especially regionally. In response, international brands have increasingly turned to direct raids instead of civil lawsuits. Brand Protectors India CEO Singh, interviewed by Aljazeera, describes these criminal raids as effective but demanding operations that seize counterfeit goods and disrupt illegal sellers. Singh, who has conducted over 2,300 raids despite facing violence and threats, emphasizes that consistent, zero-tolerance policies force counterfeiters to change tactics.
Parimatch believes that improving intellectual property protections alone is not enough. True change requires firm commitment from officials and judges, aggressive anti-counterfeiting enforcement, and consumer refusal to buy fakes. This collective intolerance will not only protect brands but also increase tax revenues and improve the lives of India’s vast population.
Parimatch concludes that combating counterfeiting decisively is critical for India’s economic growth and the well-being of its people, and calls for stronger legal and social resolve to tackle this pervasive challenge.
