New Delhi, Sep 11 : The Indian authentication and traceability (A&T) industry is projected to reach Rs 10,612 crore in FY 2024-25 and Rs 16,575 crore by FY 2028-29, reflecting a strong upward trajectory with a forecasted compound annual growth rate (CAGR) of 11.3 per cent, a report said on Thursday.

The sector was at Rs 9,705 crore in FY 2023-24, growing at a CAGR of 7.4 per cent since FY 2019-20, according to a joint report of the Authentication Solution Providers' Association (ASPA) and Accenture.

Globally, the A&T market stood at $147 billion in 2023 and is projected to grow to $382 billion by 2032.

The Asia-Pacific region is expected to lead this growth, with a CAGR of 14.2 per cent, driven by increasing regulatory mandates and rising consumer demand for transparency and authenticity.

According to the report, key sectors driving demand in India include pharmaceuticals (17 per cent), consumer products (14 per cent), cosmetics (13 per cent), and automotive components (13 per cent).

Factors such as the rise in counterfeiting, growing e-commerce penetration, consumer awareness, and regulatory requirements are contributing to the sector's growth.

'This report is a milestone for India's fight against counterfeiting. Authentication and traceability are no longer optional; they are essential to protect consumers, safeguard brands, and build trust in the marketplace. With India's A&T industry set to grow at double-digit rates, this study will guide policymakers, businesses, and stakeholders in shaping a safer, more transparent future,' said Manoj Kochar, President, ASPA, addressing the event.

While traditional technologies like holograms and QR codes continue to dominate, growing interest in next-generation technologies such as blockchain, internet of things (IoT), and AI, the report highlighted.

The report was prepared based on survey responses from ASPA member companies, along with in-depth interviews with government authorities, industry stakeholders, and global bodies.

/IANS