New Delhi [India], September 24 (ANI): Illicit activities in terms of counterfeiting and smuggling strike at the very foundation of India’s aspiration to become a USD 5 trillion economy, Karan Goel IPS, DCP/West, Haryana Police Service said on Wednesday.
“Illicit activities in terms of counterfeiting and smuggling strike at the very foundation of our aspiration to become a 5-trillion-dollar economy. These clandestine operations weaken legitimate enterprises, drain government revenues, and impede overall economic progress. To achieve our national vision, it is imperative that we come together to confront this menace and strengthen our economy against its corrosive impact,” Goel said, addressing the FICCI CASCADE’s programme on Enforcement Against Illicit Economies: Strengthening the Role of Police in Preventing Transnational Crime.
Goel emphasized, “These illicit activities deprive legitimate businesses of their fair share and endanger the very fabric of our society. The harm caused goes far beyond financial setbacks, posing serious risks to public safety and consumer trust. This makes it imperative for law enforcement agencies to be adequately equipped and well-informed, ensuring they can effectively protect citizens from the dangers inherent in these unlawful practices.”
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. Moreover, the associated health risks of counterfeit products are a grave concern, posing a direct threat to the well-being of the public.”
The Interactive Session titled “A Unified Global Front: Strategic Action Against Illicit Markets”, featured an active participation from the Japan delegation, including representatives from Seiko Epson, Yonex, Kubota, Canon, Casio India, Panasonic Life Solutions India, and Honda Motorcycle & Scooter India Pvt. Ltd.
The delegation shared their perspectives on the challenges posed by illicit trade, its impact on industry and consumers, and the need for stronger international cooperation, innovative enforcement strategies, and collaborative industry-government action to dismantle these illegal networks.
As per the report by FICCI CASCADE titled “Challenging Landscape of Illicit Trade: How Changing Factors of Consumption Affect Illicit Markets in 5 Key Industries in India”, the size of illicit market in the five key sectors- FMCG packaged goods, personal and household care, alcohol, tobacco, and textiles & apparel has been estimated at about Rs. 7.97 lakh crore.
The report highlights that the illicit market size for textiles and apparel stands at Rs 4,03,915 crore, accounting for over 50 percent of the total illicit trade. Additionally, illicit markets for – FMCG (Packaged foods) and FMCG (Personal and Household Care Goods are estimated at Rs 2,23,875 crore and Rs 73,813 crore, respectively.
The report highlighted that illicit trade is undermining legitimate businesses, distorting market competition, and significantly reducing the government’s tax revenues in the five mentioned sectors. The impact of illicit trade is particularly severe in industries historically subjected to higher tax regimes, such as tobacco and alcohol. In the tobacco sector, over 50 percent of the illicit market can be attributed to punitive taxes, while for alcohol, this figure stands at 46 percent.
FICCI CASCADE has been working closely over the years with government, industry, enforcement officials, legal fraternity, consumer organizations and the youth to create awareness about the detrimental impact of counterfeiting and smuggling. Among other activities, FICCI CASCADE has been regularly engaging with law enforcement agencies including police, customs and paramilitary organizations engaged in border protection in sensitizing them on the gravity of the problem.
The programme witnessed enthusiastic participation from over 150 officers in Haryana, equipping them with valuable skills and knowledge to address the adverse impacts of counterfeiting and smuggling. (ANI)
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