Allowing FDI in multi-brand retail is expected to address the concerns over the sale of counterfeit products in the Indian market and eliminate intermediary players involved in the production, says a panel of a seminar held in Ahmedabad, India.

FICCI (Federation of Indian Chambers of Commerce and Industry) and CASCADE (Committee on anti-smuggling and counterfeiting activities destroying the economy) have jointly organized the seminar ‘Curbing Counterfeiting and Smuggling – An Imperative for Indian Economy’.

The speakers opined that the recent decision by Indian government to allow 51% FDI in multi-brand retail would ensure the supply of genuine goods into the market, reported Times of India.

FICCI-CASCADE advisor P C Jha said the policy would reduce the supply chain and subsequently wipe out the players involved in making and selling fake products.

"FDI in multi-brand retail will give better control on the source of goods and enhance services," Jha added.

"The annual global trade of fake goods is $650 billion. By 2015, this is set to increase 100 times."

Another panel member and former Gujarat high court judge D A Mehta said that the fake goods show negative impact on the country’s economy.

"Counterfeiters do not pay taxes which is a revenue loss for the government. Consequently, infrastructural spending in education, health and other sectors get reduced," Mehta said.

According to the experts on the panel, the illegal trade is effectively happening owing to price differences among neighbouring countries, tax arbitrage and ineffective control, the news agency reported.