IP House and ISB warn counterfeit goods are a consumer safety threat in India

New research from IP House and the ISB Institute of Data Science finds that nearly four in five Indian consumers have bought a counterfeit product at least once, often without knowing it. The report says counterfeits are spreading through mainstream retail channels and poses calls for stronger enforcement, consumer education, and technology-driven detection.

Why it matters: - Counterfeit goods in India are not just a pricing issue. The research frames them as a consumer safety, public health, and organized-crime problem. - The findings cover everyday products that people buy and use regularly, including medicines, food and beverages, electronics, children's toys, cosmetics, and automobile parts. - The report says better awareness and enforcement could reduce hidden harm, improve trust in retail channels, and make it harder for counterfeit networks to operate.

What happened: - IP House and the Indian School of Business (ISB) Institute of Data Science released Counterfeit Crisis in India: Consumers, Consumption and Consequences on July 26, 2026. - The report draws on a nationally distributed YouGov study of more than 1,000 online urban Indian consumers, plus sector analysis and documented cases of counterfeit-related harm. - The study found that 79% of respondents had purchased a counterfeit product at least once. - More than half of those buyers, 54%, said the purchase was made unknowingly. - The research says counterfeit goods are circulating through street markets, online marketplaces, social media, and physical retail.

The details: - The report says counterfeiting is a lucrative illicit enterprise used by transnational criminal networks, consistent with assessments from Interpol and Europol. - 62% of respondents recognized counterfeit products as a serious risk to consumer health. - Many respondents still viewed counterfeiting as a market or economic issue rather than a broader illicit activity. - Only 44% initially recognized the sale of counterfeits as a crime. - After organized crime was clearly defined, 56% agreed criminal networks are involved in the manufacture, distribution, and sale of counterfeit products. - 50% said raising public awareness of organized crime's role is an important step to protect consumers. - The report says counterfeit trade can cause poisoning, burns, allergic reactions, fires, injuries, and, in documented cases, fatalities. - Methanol-laced illicit liquor has caused mass fatalities in multiple states. - Counterfeit and contaminated medicines have been linked to treatment failures and child deaths. - Unsafe electronics, toys, and auto parts can cause harm before consumers realize anything is wrong. - The report calls for more consistent, intelligence-led enforcement across local police, customs agents, regulators, online platforms, and brand owners. - It also recommends specialized intellectual property and consumer safety task forces for high-risk counterfeit categories. - The report urges consumer education that explains how to verify, avoid, and report suspected counterfeits.

Between the lines: - The research points to a perception gap: when consumers view fakes as a cheaper substitute, stigma weakens and reporting falls. - The report argues that convenience and trust in established platforms can reduce vigilance online, making counterfeit purchases harder to spot. - Jan van Voorn, CEO of IP House, said the counterfeit trade is closely linked to highly organized criminal networks that exploit global supply chains and online marketplaces. - Professor Manish Gangwar, executive director of ISB IIDS, said consumer awareness is necessary but no longer sufficient, and pushed for artificial intelligence, digital authentication, and intelligence-led enforcement. - The report's larger point is that counterfeiting should be treated as a coordinated safety and security challenge, not just a consumer nuisance.

What's next: - IP House and ISB are calling for a coordinated response involving government, brands, platforms, and consumers. - The report points to technology-enabled tools and stronger enforcement as the most likely path to disrupting counterfeit networks before products reach buyers. - The ISB Institute of Data Science says it will continue advancing evidence-based technologies and policy frameworks for India's digital and physical marketplaces.

The bottom line: - Counterfeit goods are widespread, often invisible to buyers, and tied to real harm. The report says India needs faster detection, sharper enforcement, and clearer consumer guidance to keep fake products off shelves and screens.