The Business of Counterfeit Drugs in India: A Critical Evaluation

Drug counterfeiting has become a problem of immense magnitude worldwide which has aroused a significant level of attention among researchers, managers and policy makers. The counterfeit drug industry is estimated to be worth $200 billion a year [1] and has been defined as the “The crime of the 21st century” (ACG Report 2003), present in almost every industry with Asia appearing to be the single largest producing region for counterfeit drugs. 75% of counterfeit drugs supplied world over have some origins in India, followed by 7% from Egypt and 6% from China responsible for 3000 deaths across worldwide per year. Drug Counterfeiting is a worldwide phenomenon having both social and economic impacts, and India is not an exception to it. According to BASCAP“Pharmaceutical industry is the most counterfeited industry in India”. CDSCO conducted a nationwide survey in 2009, collected 24136 samples from 1995-2008, out of which 1693 found counterfeited. The Pharmaceutical Security Institute (PSI, 2013) discovered 2,193 incidents of pharmaceutical crime during 2013. The present study is based on the extensive review of the relevant conceptual and empirical literature derived from various agencies to evaluate the reach of counterfeiting in Indian pharmaceutical sector. Results indicate the role of IP rights in pharmaceutical industry and provides for various strategies and recommendations to deter the illegal business of drug counterfeiting in India.