35 pc fake drugs worldwide come from India

New Delhi, Jan 9 (UNI) An a startling revelation, 35 per cent of fake drugs sold worldwide are sourced from India, where the indigenous spurious medicines market has grown to the level of Rs 4,000 crore this fiscal from the estimated Rs 3,000 crore in the previous year.

According to Assocham estimates, 20 per cent of medicines sold off across India are fake. Sixty per cent of these medicines are without active ingredients, 19 per cent have wrong ingredients while 16 per cent have harmful and inappropriate ingredients such as talcum powder.

The total volumes of counterfeit and contraband products have gone up to the level of Rs 30,000 crore by 2006. In music industry, the proportion for real and fake product is equal, while entertainment software piracy level is estimated at 80 per cent.

Fake gold and precious metal that is in circulation in market contain 88 per cent of impurity at variety of levels.

These figures throw light on the absence of effective legislation to check the penetration of fake materials in the country, which tantamount to the government loosing Rs 15,000 crore which can be collected as taxes.

According to a study on 'Counterfeits, Spurious&Contraband Goods: Preventive &Remedial Issues', About a year ago, the total spurious market in India stood at the level of Rs 20,000 crore in which the fake drugs market was estimated at slightly lessor than Rs 3,000 crore.

Commenting on the findings of the study, Assocham President Anil K Agarwal said the FMCG sector is another worst victim of fake products, the estimates for which work out to be Rs 8,000 crore and about 30 per cent of leading FMCG manufacturers suffer on account of this.

Consumer products with fake ISI marking endangers consumers and their safety particularly in the segments like LPG cylinders, food colours, food additives, pressure stoves, safety items used in mines, clinical thermometers, packaged drinking water and electrical appliances.

The study brings to the fore that during 2003-05, Rs 30 crore worth of CDs and DVDs, computer peripherals, CD players, FMCG products and automobile spare parts were seized from four metros.

Mumbai Police registered 256 cases against those indulged in making of fake products while arresting 517 accused. The Delhi Police registered 69 cases against those who make contraband products and arrested 101 accused. In these two cases, the value of seizers were estimated at Rs 25 crore.

The causes, as per findings of the study, for increasing cases of counterfeit products include lack of legislation, lack of enforcement, lack of deterrents, lack of anti-counterfeit culture and lengthy court procedures.

''An enactment of legislation is urgently called for to prevent and altogether put a full stop on the flourishing business of fake products making,'' said Mr Agarwal.

He said Assocham has already taken up the issue with the Consumer Affairs Ministry a couple of months ago which in turn had asked the chamber to come out with detailed study as a precursor to making the legislation with facts and figure.

''It is in view of this that the chamber conducted the study and now some of its findings are being giving final touches following whose completion, the Study will be submitted to the government,'' said the Assocham Chief.

UNI