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By:

Kaustubh Kale

10 September 2024 at 6:07:15 pm

Silent Money Killer: Loss of Buying Power

In personal finance, we often worry about losing money in the stock market, dislike the volatility associated with equities or mutual funds, or feel anxious about missing out on a hot investment tip. Yet the biggest threat to our wealth is far quieter and far more dangerous: loss of buying power. It is the invisible erosion of your money caused by inflation - a force that operates every single day, without pause, without headlines, and often without being noticed until it is too late....

Silent Money Killer: Loss of Buying Power

In personal finance, we often worry about losing money in the stock market, dislike the volatility associated with equities or mutual funds, or feel anxious about missing out on a hot investment tip. Yet the biggest threat to our wealth is far quieter and far more dangerous: loss of buying power. It is the invisible erosion of your money caused by inflation - a force that operates every single day, without pause, without headlines, and often without being noticed until it is too late.
Inflation does not take away your capital visibly. It does not reduce the number in your bank account. Instead, it reduces what that number can buy. A Rs 100 note today buys far less than what it did ten years ago. This gradual and relentless decline is what truly destroys long-term financial security. The real damage happens when people invest in financial products that earn less than 10 per cent returns, especially over long periods. India’s long-term inflation averages around 6 to 7 per cent. When you add lifestyle inflation - the rising cost of healthcare, education, housing, travel, and personal aspirations - your effective inflation rate is often much higher. So, if you are earning 5 to 8 per cent on your money, you are not growing your wealth. You are moving backward. This is why low-yield products, despite feeling safe, often end up becoming wealth destroyers. Your money appears protected, but its strength - its ability to buy goods, services, experiences, and opportunities - is weakening year after year. Fixed-income products like bank fixed deposits and recurring deposits are essential, but only for short-term goals within the next three years. Beyond that period, the returns simply do not keep pace with inflation. A few products are a financial mess - they are locked in for the long term with poor liquidity and still give less than 8 per cent returns, which creates major problems in your financial goals journey. To genuinely grow wealth, your investments must consistently outperform inflation and achieve more than 10 per cent returns. For long-term financial goals - whether 5, 10, or 20 years away - only a few asset classes have historically achieved this: Direct stocks Equities represent ownership in businesses. As companies grow their revenues and profits, shareholders participate in that growth. Over long horizons, equities remain one of the most reliable inflation-beating asset classes. Equity and hybrid mutual funds These funds offer equity-debt-gold diversification, professional management, and disciplined investment structures that are essential for long-term compounding. Gold Gold has been a time-tested hedge against inflation and periods of economic uncertainty. Ultimately, financial planning is not about protecting your principal. It is about protecting and enhancing your purchasing power. That is what funds your child’s education, your child’s marriage, your retirement lifestyle, and your long-term dreams. Inflation does not announce its arrival. It works silently. The only defense is intelligent asset allocation and a long-term investment mindset. Your money is supposed to work for you. Make sure it continues to do so - not just in numbers, but in real value. (The author is a Chartered Accountant and CFA (USA). Financial Advisor.Views personal. He could be reached on 9833133605.)

Forensic Battle Against Counterfeit Medicines

In India, counterfeit medicines have quietly become a serious threat, even reaching legitimate shops and hospitals.

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India is now increasingly threatened by the growing menace of counterfeit medicines. Counterfeit medicines are fake drugs that look just like the real ones but might not work—or worse, they could harm health. Fake medicines often contain no real ingredients, wrong substances, or harmful chemicals, yet are packaged with labels, logos and seals to look authentic. In India, where medicines are used by millions every day, counterfeit drugs have quietly become a serious threat, even reaching trusted shops and hospitals. These illicit drugs find their way into legitimate supply chains. As counterfeiters grow more sophisticated, spotting and stopping these drugs is increasingly critical.


Counterfeiters target multiple parts of a drug’s presentation. They even exploit the names of reputed pharmaceutical companies to circulate fake medicines in the market, deceiving both regulators and consumers. Counterfeit tablets or capsules often mimic the colour, shape, and size of real drugs but may lack active pharmaceutical ingredients (APIs) or contain harmful substitutes. They differ in texture, weight, and dissolution. Common signs include incorrect fonts, misspellings, poor logos, fake QR codes or holograms that don't link to verification databases, and low-quality packaging. Batch numbers and expiry dates are often printed with non-standard inks, and tamper-evident seals are typically forged, lacking proper pressure sensitivity or adhesive bonding of the genuine products. Counterfeiters use fake licences and illegal manufacturers to dodge regulation.


India is tackling counterfeit drugs with a multi-layered strategy combining forensic science and regulation. Key steps include QR code-based serialisation for full drug traceability and upgrading state and central forensic labs into specialised pharma forensics units. These labs use tools such as Raman spectroscopy, infrared analysis, and AI databases. Experts use visual and digital autopsies to examine packaging and contents, while digital forensics from phones and computers uncovers networks. Fingerprint analysis links suspects to crime scenes, and psychological profiling aids in understanding perpetrators. This integrated approach helps to detect, trace, and dismantle fake drug operations to safeguard public health.


The Parliamentary Standing Committee's fifth report (2024–25) flags widespread spurious drugs and a misleadingly low 5.9% conviction rate. Of 2.3 lakh samples tested (2015–2019), 593 were spurious and 9,266 substandard, yet only 35 convictions occurred. In April 2025, 196 drug samples were declared ‘Not of Standard Quality (NSQ)—60’ by central labs and 136 by state labs. Similar concerns were raised in March 2025 and December 2024, when 135 NSQ drugs were flagged.


Key counterfeit medicine hubs in India include Delhi-NCR, Baddi, Kolkata, Patna, Mumbai, and parts of UP and Hyderabad. These areas are exploited for their pharma activity, weak oversight, and transport access, aiding fake drug production and distribution.


There is currently no centralised national database to track counterfeit medicine cases, which allows repeat offenders to secure bail relatively quickly after serving only a short period in police or judicial custody. Although violators are subjected to provisions under the Drug and Cosmetics Act, enforcement remains challenging.


In November 2024, the Supreme Court issued a notice based on a petition filed by the Indian Pharmaceutical Alliance seeking clear guidelines for prosecuting counterfeit drug offences. In March 2025, the Delhi High Court ruled in favour of Johnson & Johnson, imposing a ₹3.34 crore penalty on Medserve for selling counterfeit medical devices, emphasising the serious threat to public health.


ANTF and DCA Telangana have led multiple successful raids, seizing counterfeit, expired, and unlicensed drugs and arresting key offenders. These actions, supported by the Pharma Task Force and State Drug Officers, disrupted major fake medicine networks. Tackling counterfeit drugs is a critical public health issue, demanding stronger forensic tools, digital traceability, and coordinated national action to safeguard lives and the pharma industry’s integrity.


(Dr. Kumar is a former IPS officer and forensic consultant to Assam government. Das is a student of FSU, Guwahati. Views personal.)

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