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Illicit Trade Threat: How Smuggling and Counterfeiting Undermine India's Economy

Experts at a FICCI CASCADE training program sounded the alarm on the severe threats posed by illicit trade. They highlighted how smuggling and counterfeiting undermine legitimate businesses and drain government revenue. The event brought together over 60 senior police officers to discuss enforcement challenges and collaborative solutions. A key report revealed the illicit market in five sectors is worth nearly Rs. 8 lakh crore.

Key Points: FICCI CASCADE Experts Warn Illicit Trade Threatens Economy, Security

  • Illicit trade in five key sectors is valued at a staggering Rs. 7.97 lakh crore
  • Capacity-building for police is critical to tackle complex economic offences
  • Counterfeit goods erode consumer trust and deprive the nation of vital tax revenue
  • A victim-centric policing approach is needed to grasp the full impact of these crimes
3 min read

Illicit trade poses serious threat to economy and national security: Experts at FICCI CASCADE

Experts at a FICCI CASCADE event warn that smuggling and counterfeiting pose a severe threat to India's economic growth, consumer safety, and national security.

"Counterfeit trade and smuggling drain India's economic potential. If we could cut illicit trade by just 50%, it would unlock unprecedented economic growth... - Ashish Paul, ITC Ltd."

New Delhi, December 17

Illicit trade, including counterfeiting and smuggling, poses a serious transnational threat to economic growth, consumer safety and national security, noted experts and law enforcement officials at a capacity-building programme organised by FICCI CASCADE in the national capital.

FICCI's Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (CASCADE) organised a Capacity Building Programme for Police Officers on "Illicit Trade: Enforcement Challenges & Solutions" at the Specialized Training Centre in Delhi. The programme brought together over 60 senior police officers and industry representatives to discuss enforcement challenges and collaborative solutions to curb illicit trade.

Addressing the gathering, Yogesh Malhotra, Assistant Commissioner of Police, Specialized Training Centre, Delhi Police, highlighted the importance of such initiatives in strengthening enforcement capabilities. He said that capacity-building programmes play a critical role in improving the preparedness and operational effectiveness of police personnel dealing with economic offences.

Malhotra stated, "As police officers, it is imperative to acknowledge the extent to which counterfeit and smuggled goods have penetrated the marketplace. These unlawful practices not only undermine the economy but also adversely impact the social fabric, public health, and the overall well-being of citizens."

Emphasising the role of policing from a victim-centric perspective, O P Thakur, Inspector, Delhi Police, said, "Police officers must view crimes through the eyes of the victims to fully grasp the extent of their suffering." He stressed the need to acknowledge every cognizable offence and ensure timely and appropriate action against offenders.

Highlighting the broader economic and public health impact, Deep Chand, Advisor, FICCI CASCADE and Former Special Commissioner of Police, New Delhi, said, "Counterfeiting and smuggling have several detrimental effects. They result in significant losses for legitimate businesses, erode consumer trust, and deprive the nation of crucial revenue, thereby hindering overall growth and development."

A key feature of the programme was an interactive session between industry and enforcement agencies. Mr. Ashish Paul, Vice President-Corporate Affairs, ITC Ltd., said, "Counterfeit trade and smuggling drain India's economic potential. If we could cut illicit trade by just 50%, it would unlock unprecedented economic growth, generate employment, and boost legitimate businesses, reinforcing India's journey toward self-reliance."

He further added, "Generating awareness among young enforcement officials along with the discerning consumers is the need of the hour."

According to a FICCI CASCADE report, the illicit market across five key sectors is estimated at Rs. 7.97 lakh crore, with textiles and apparel accounting for over half of the total value. The report noted that illicit trade continues to undermine legitimate businesses, distort market competition and significantly reduce government tax revenues, particularly in high-tax sectors such as tobacco and alcohol.

- ANI

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Reader Comments

S
Sarah B
The figure of nearly 8 lakh crore rupees is staggering. That's money taken away from public services, infrastructure, and healthcare. When people buy cheap counterfeit goods, they don't realize the long-term cost to the nation's development. Awareness is key.
A
Arjun K
Finally, some focus on this! The textile sector being the biggest culprit doesn't surprise me. So many local weavers and genuine manufacturers are suffering because of smuggled fabrics and fake branded clothes. It kills 'Make in India'. Enforcement needs to be stricter at the ground level.
P
Priyanka N
While the initiative is good, I hope it leads to real action and isn't just another seminar. We have strong laws, but implementation is weak. The "victim-centric" approach mentioned is crucial. The real victims are honest businesses and consumers cheated by substandard products.
M
Michael C
The national security angle is often overlooked. Illicit trade funds other illegal activities and can weaken border security. Collaborative solutions between industry and police are the only way to tackle such a widespread, organized problem.
K
Kavya N
As a consumer, it's sometimes hard to tell what's genuine, especially online. The government and companies need to run more public campaigns to educate people. We should feel proud buying real Indian products, not fake ones that hurt our own economy. Jai Hind!

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