India's Shadow Economy: Smuggling & Counterfeiting Betray Consumer Trust

"Smuggling and counterfeiting are not victimless crimes. They form a shadow economy that directly harms the consumer through the unsafe, substandard or even toxic products, undermines honest business," Joshi said.

He was virtually addressing the FICCI CASCADE Seminar on protecting consumers from the threat of smuggling and counterfeiting.

"The economic growth is meaningless if it is not built on a trust and consumer safety,' he said, adding that when a product is fake, it is not just a business loss, it is a betrayal of our consumers' faith.

The government is committed in the vision that India remains a global hallmark of trust that no smuggler or no counterfeiter can undermine the hard-earned trust of Indian consumers, the minister said. Joshi said the government had moved "from a scattered system to a unified front" and was empowering consumers to fight back through legal mechanisms.

Joshi also outlined the role of the Consumer Protection (E-Commerce) Rules 2020, designed to regulate responsibilities and liabilities of online platforms, including pre-litigation grievance redressal.

The National Consumer Helpline (1915) emerged as a single point of access for grievances in 17 languages, with refunds totaling ₹52 crore across more than 79,000 cases in the past year, he added.

Calling for a shared responsibility between government, industry, and civil society, Joshi said, "While the government provides a legislative framework, the industry must lead with ethical practices... when a product is fake, it is not just a business loss, it is a betrayal of our consumers' faith."

He urged stakeholders to ensure Made in India remains a global hallmark of trust that no smuggler or counterfeiter can undermine, emphasizing that consumer awareness, technology, and enforcement must work together to dismantle networks of smuggling and counterfeiting.

In the same event, Anil Rajput, Chairman, FICCI CASCADE, said, "advancing consumer protection today requires a decisive shift from a reactive approach to a preventive, structured and forward-looking system.'

While the Government of India has taken significant steps through the Consumer Protection Act, 2019, the establishment of the Central Consumer Protection Authority, and initiatives like 'Jago Grahak Jago', the evolving nature of illicit trade demands stronger implementation and deeper institutional coordination, he added.

"We need better intelligence-sharing across agencies, stronger enforcement mechanisms, and greater use of technology to detect and prevent violations," Rajput said.

At the same time, a whole-of-society approach bringing together government, industry and consumers is essential to effectively combat smuggling and counterfeiting, he said.

Anil Rajput, Chairman, FICCI CASCADE told ANI that efforts are being made to educate consumers about the smuggling and Counterfeiting. They are being educated to stay away from such products.

He said there are various challenges in curbing such menaces online or offline is definitely challenging but the government is committed to take strict action against them and provide relief to the consumers to retain their trust in the products they purchase in the country.

- ANI