Made in India: 35% of world's fake drugs claim

One in five drugs sold in India is counterfeit, according to the Associated Chambers of Commerce and Industry of India (Assocham). Worldwide, 35% of all fake drugs originate in India, according to the business organization, in a special report which has been submitted to the Indian federal government.

The Assocham report also estimates that the domestic fake drug market is growing at an astonishing 33% per year, from 30.0 billion rupees ($678.5 million) in 2005 to 40.0 billion rupees last year. The worst offenders in terms of quality control are government hospitals, where about 38% of drugs are fake, nearly double the national average. The Assocham also believes that 60% of fake drugs in India contain no active ingredients, 19% have the wrong substances and 16% include harmful and inappropriate ingredients, such as talcum powder.

The group estimates the damage to the country's economy from all classes of counterfeit goods at 150.0 billion rupees, from an estimated turnover of 300.0 billion rupees. The worst market in terms of counterfeiting is gold and precious materials (India has the world's highest level of private gold holdings), followed by entertainment software piracy and recorded music. However, this calculation assumes the dubious premise that, if the goods were legitimate and taxed, consumers would have the purchasing power to buy the same volume of goods at the higher prices.