As the Make In India Week wound down in Mumbai, experts say one key hurdle to the success of this initiative is rampant counterfeiting of goods in India.
According to Euromonitor International, counterfeiting accounts for 5-7% of world trade, about $600 billion.
In India, the exchequer suffered a loss of Rs 26,190 crore in 2012, according to a Federation of Indian Chambers of Commerce and Industry (Ficci) report.
The Ficci Cascade study also estimated loss of sales to industry at Rs 1.05 trillion owing to counterfeiting in 2013-14.
Needless to say, as the financial capital of the country and the capital of a top industrial state, Mumbai figures prominently as a centre of counterfeiting in India.
“A report by the United States Trade Representative has named Nehru Place and Palika Bazaar in New Delhi; Richie Street and Burma Bazaar in Chennai; Manish Market, Heera Panna, Lamington Road and Fort District in Mumbai and Chandni Chowk in Kolkata as markets that need to be watched out for high-volume illicit trade,” says a report called Emerging Challenges to Legitimate Business in the Borderless World from Grant Thornton and Ficci Cascade.
Mumbai figures high in apparel counterfeiting. For instance, the finished leather trade, which is a continuing cause of concern for luxury brands such as Louis Vuitton, operating in the Dharavi slum area.
“Accessing Dharavi, a region which by and large lacks any formal addresses presents prime challenges in addition to securing adequate police protection when executing an anti-counterfeiting raid,” says the report.
The other key examples of counterfeiting trade in Mumbai are around Manish Market, Linking Road and Lamington Road, where goods such as electronics, fake CDs and DVDs.