Insights · tech brief

India’s Anti-Counterfeiting Push: Covert Tech and Digital Trust

From covert luminescent taggants to blockchain-backed verification, Indian innovators are building a multi-layered defense against a counterfeit crisis that touches every sector.

Published 21 Jul 2026

Consumer exposure: pervasive
Market momentum: double-digit growth
Technology shift: covert-first

The problems being solved

The counterfeit crisis in India is pervasive. Close to nine in ten urban consumers admit to purchasing a fake product at least once, and more than half of these purchases now happen through online aggregators. Apparel and pharmaceuticals are among the hardest-hit categories. The problems span from consumer health risks—especially with spurious medicines—to brand erosion and economic loss. Security documents like banknotes and identity cards also face sophisticated forgery, demanding ever more complex visual and magnetic features. Physical objects, from plastic containers to ceramic décor, need unique, hard-to-replicate identifiers. And supply chains lack real-time visibility, allowing counterfeits to slip in undetected.

Consumer fraud and health risks from fake medicines
Difficulty distinguishing genuine from counterfeit at point of sale
Vulnerability of banknotes and ID documents to advanced replication
Infiltration of counterfeits into supply chains via e-commerce

How the field is solving it

Indian innovators are weaving together digital and physical defenses. On the digital side, blockchain creates immutable records for each product, while QR codes and AI-powered image analysis let consumers and inspectors verify authenticity in real time. On the physical side, security documents are getting multi-layered features: color-shifting inks that dance when tilted, magnetic threads with alternating coercivity, and diffractive structures that produce dynamic visual effects. Covert taggants—like upconversion phosphors that emit visible light under infrared—are being embedded into packaging and labels, invisible to the naked eye but detectable with specialized readers. Advanced imaging techniques, including terahertz and matrix-array proximity sensors, are making it possible to read hidden patterns even when marks are distorted. And consumer-friendly tools, from talking pens that speak a product’s authenticity to audio-based verification, are lowering the barrier for everyday use.

Blockchain and QR codes for immutable traceability
Multi-layered optical and magnetic security features on banknotes
Covert luminescent taggants for invisible authentication
Terahertz imaging and distortion-tolerant algorithms for robust reading
Consumer tools like talking pens and audio verification

Where the market is heading

The global anti-counterfeiting packaging market is pegged between roughly USD 170 billion and USD 200 billion, expanding at a double-digit annual clip (Fortune Business Insights, InsightAce Analytic). Within that, brand protection features alone account for around USD 4 billion (Smithers). In India, the urgency is palpable: a recent survey indicates that three in four consumers feel counterfeiting has worsened over the past year. This is pushing a shift from overt holograms to covert technologies, as generative AI makes overt features easier to replicate. Digital authentication via smartphones is gaining ground, and blockchain-based traceability is moving from pilot to production. Regulatory pressure and consumer demand for authenticity are accelerating adoption, especially in pharmaceuticals and apparel. The annual Anti-Counterfeiting & Brand Protection India Summit draws major brand owners, signaling a market that is rapidly professionalizing.

The white space

The biggest opportunity lies in making authentication affordable enough for fast-moving consumer goods—everyday items where margins are thin but counterfeit risk is high. Another gap is connectivity: solutions that work offline or with basic feature phones could unlock trust in rural and semi-urban markets where internet penetration is still patchy. Integrating digital, physical, and covert methods into a single, easy-to-adopt platform remains an open challenge; manufacturers need a plug-and-play stack rather than piecemeal tools. Finally, the cold chain and perishables sector is crying out for anti-counterfeiting that also monitors tampering and real-time conditions, combining authenticity with safety.

Explore the innovators

Behind these advances are inventors filing patents for everything from crack-pattern security labels to blockchain-anchored QR systems. The full landscape of Indian innovators—their patents, approaches, and the problems they’re tackling—is available to explore on Deeptech Navigator. Dive in to see who is building the next layer of trust.

Knowledge graph

How the technologies, companies and players in this briefing connect.

problem

Counterfeit CrisisConsumer Health RiskSupply Chain Infiltration

approach

Digital AuthenticationMulti-Layered Security FeaturesCovert TaggantsAdvanced ImagingConsumer Verification Tools

technology

Blockchain & QRColor-Shifting InksLuminescent PhosphorsTerahertz ImagingTalking Pen

application

PharmaceuticalsApparel & FashionBanknotes & IDs

Counterfeit Crisis leads to Consumer Health Risk
Counterfeit Crisis manifests as Supply Chain Infiltration
Digital Authentication uses Blockchain & QR
Multi-Layered Security Features includes Color-Shifting Inks
Covert Taggants employs Luminescent Phosphors
Advanced Imaging leverages Terahertz Imaging
Consumer Verification Tools example Talking Pen
Digital Authentication applied to Pharmaceuticals
Multi-Layered Security Features applied to Banknotes & IDs
Covert Taggants applied to Apparel & Fashion
Supply Chain Infiltration mitigated by Digital Authentication
Consumer Health Risk critical in Pharmaceuticals

In our data

Sectors

Defence & Security

Technologies

anti counterfeiting

Sources

This briefing is AI-generated from Deeptech Navigator's patent and startup data and lightly reviewed before publishing. Treat it as a starting point, not professional advice - figures are directional, so verify before relying on any number. The platform takes no responsibility for decisions made on it.

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