New Regulation to Curb Drug Counterfeiting in India


India’s pharmaceutical market is reported to be the world’s third largest in terms of volume, but the thirteenth largest in value. This can be attributed to its low manufacturing costs and the availability of a skilled workforce. India currently supplies over 50 percent of global demand for various vaccines, pharmaceutical export from India was estimated to be US$ 17.27 billion in 2017-18 and is expected to grow by 30 percent to reach US$ 20 billion by the year 2020. The pharmaceutical industry in India, being one of the largest in the world attracts not just investors but also counterfeiters.

The counterfeit drugs may be of poor quality, unsafe or ineffective; threatening the health of those that take them. Counterfeit medicines pose a significant public health risk; they can lead to treatment failure, organ dysfunction, and damage, worsening chronic disease condition and can cause early death. The intake of fake drugs has an adverse effect on the immune system as well, and this affects the recovery of a patient from the disease process. A high prevalence of counterfeit drugs has a significant impact on the health and well-being of Indians and the global community at large.

According to recent reports, India loses an estimated $7.8 in revenue annually to counterfeit trade while companies lose over 10% percent in revenue due to counterfeit products (Ahmedabad, 2018).  A similar publication reports that fake drugs form 20% of the 40,000 crore Pharma market in India. The new initiative by the Drugs Controller General of India (DCGI) addresses the need to provide consumers with high quality and authentic pharmaceutical products. This initiative will enable consumers to check the authenticity of the drug they desire to purchase to verify if the drugs are indeed genuine. Consumers will be empowered to protect themselves against counterfeiters while brands will have the needed tools to protect their brand reputation.

How Does Sproxil Create Value

Sproxil partners directly with legitimate manufacturers and distributors to apply a special security label with a scratch-off panel to each product unit they manufacture, this Enable consumers at the point of purchase, verify the authenticity of the product. Sproxil empowers consumers by providing them with a sense of security and trust when making purchase decisions about a product. Hence, consumers can avoid wasting time, money and risking their wellbeing on substandard fakes.

 How it Works

At the point of purchase, consumers will find the security label with scratch off the panel to reveal a unique, single-use code, which they then send via SMS to us. Our cloud-based technology processes the code and returns a response confirming that the product is genuine or warning that it is suspicious. Consumers can also access the service through various channels a mobile app (available on iOS, Android, and Blackberry), web app (, or by calling the company’s local 24/7 Call Centre (which supports major local languages).

 Sproxil enables consumers to take an active role in the fight against counterfeit products by providing information to brand owners that can help them identify areas where counterfeiting or product theft may be present. Sproxil creates a channel for consumers and brands to communicate. Finally, consumers can have a way to provide feedback to brands so that brands can deliver better services and products back to loyal customers.

With the client’s consent, Sproxil can provide the government with information that could help them track down the counterfeiters and thieves. The government can save time and resources tracking down criminal activity using consumer-sourced leads. Sproxil and its clients can assist the government with public awareness campaigns and consumer education efforts. By using Sproxil, all stakeholders profit!!!

Let’s help you protect your brand and consumers from counterfeits. Click here to contact us.