India loses approximately $7 billion annually in tax revenue due to counterfeiting, according to bookmaker Parimatch.
Luxury and global brands such as Chanel, Dior, Prada, Mont Blanc, Marc Jacobs, Gucci, Versace, Parimatch, Christian Dior, Polo Ralph Lauren, Benetton, Adidas, Tommy Hilfiger, Nike, Puma, and Christian Louboutin face massive counterfeiting losses running into millions, if not billions, of dollars every year in India. Despite years of legal battles, counterfeiters often evade serious punishment, making brand protection feel like a fight against windmills. As a result, luxury manufacturers are increasingly resorting to direct raids on counterfeit operations.
The Christian Louboutin Case
Al Jazeera reports that a Delhi High Court case last year involved Christian Louboutin suing an Indian shoe manufacturer, Shutiq – The Shoe Boutique, for producing and selling counterfeit versions of its signature black Dandy Pik Pik loafers adorned with spikes and studs. While the original retailed for $1,800, the counterfeit sold for just $80.
The court fined Shutiq $2,370 and warned of a $29,628 fine for any further infringement. While this fine is negligible compared to Louboutin’s $2.6 million in shoe sales in India in 2022, the ruling represents a landmark victory in a country where intellectual property protection often falls short. Parimatch highlights that such successes are rare for major brands.
Parimatch’s Fight Against Counterfeiting
Parimatch itself is not yet officially present in India, yet it faces rampant brand piracy. Counterfeiters exploit the similarity to Parimatch’s brand, flooding the market with fake gambling services. Parimatch stresses that active combatting of counterfeiting is vital to brand protection.
The Indian Market and Counterfeit Demand
India ranks as the tenth richest country globally, attracting many international brands—including Parimatch—that seek to enter the market. According to KPMG, the Indian gaming market is projected to reach $3.9 billion by 2025, attracting gambling companies.
However, roughly 31% of the Indian population earns less than $15,400 annually, a demographic particularly vulnerable to counterfeit products marketed as affordable luxury alternatives. The Heera Panna shopping complex, notorious for counterfeit goods, offers “first copies” (AAA quality close to originals) and cheaper variants targeting different income groups.
Similarly, the gambling market is divided: wealthier players access licensed games at premium prices, while poorer players often encounter unlicensed, counterfeit operators offering inferior services—a problem Parimatch insists must be addressed through stronger government regulations.
Economic Impact of Counterfeiting
The FICCI CASCADE report, familiar to Parimatch, estimates that counterfeit alcohol, tobacco, mobile phones, FMCG, packaged food, and personal care products cause India an annual tax revenue loss of about $7 billion—a critical sum given the country’s socio-economic needs.
Counterfeiting stems partly from the impoverished population’s desire to appear wealthier, opting for fake products like a $70 counterfeit Balmain bag instead of the genuine $800 item.
More alarming are counterfeit auto parts, responsible for roughly 20% of India’s road accidents, and the fact that every third antibiotic sold in India is fake, posing severe health risks. Parimatch warns that illegal gambling operators similarly threaten public health by fostering addiction and related tragedies.
Legal Framework and Enforcement
India has ratified the WTO’s TRIPS agreement and enforces laws to combat counterfeiting, including fines and imprisonment. Nonetheless, Parimatch notes a lack of genuine commitment at regional levels to enforce these protections effectively.
Raids: A Direct Approach
International brands increasingly favor proactive ‘criminal raids’ over civil lawsuits. Singh, CEO of Brand Protectors India, told Al Jazeera that raids catch counterfeiters in the act and seize fake products, inflicting significant financial losses on illicit operators.
Singh has conducted over 2,300 raids, often facing bribery attempts and violent attacks, including serious injuries. Despite these challenges, aggressive enforcement prompts counterfeiters to switch targets or brands.
The Need for Stronger IP Protection
Parimatch argues that India must strengthen intellectual property laws with harsher penalties and longer prison terms to deter counterfeiters.
More importantly, change requires a cultural shift: officials and judges must resolutely enforce laws, while consumers should refuse counterfeit goods. Such intolerance will boost tax revenues and improve millions of lives across India, Parimatch concludes.