India suffers huge loss from illicit trade: FICCI-CASCADE Report
New Delhi, June 13 (KNN) In India the total loss to the government on account of illicit markets in just seven manufacturing sectors is Rs 39,239 crores, an estimate according to report.
According to the FICCI-CASCADE report, amongst the various sectors, the maximum revenue loss to the exchequer on account of counterfeiting and illicit trade is attributed to tobacco products (Rs. 9139 crores) followed by mobile phones (Rs 6705 crore) and alcoholic beverages (Rs 6309 crore).
Stating illicit products are adversely affecting Indian consumers, the total estimated loss to the industry is Rs 1,05,381 crores, an increase of 44.4%.
The report further mentioned that nearly 20% of accidents on Indian roads are caused by counterfeit auto-products.
Further in the FMCG sector, 30% goods sold are fake and 80% consumers believe that they are using genuine products, it added.
According to FICCI’s report – ‘Invisible Enemy – A Threat to Our National Interests’ – focusing on the negative impact of contraband goods on the Indian economy and businesses, the perpetrators are now switching over to cigarettes and fabric/silk yarn as they are low-risk, high-reward goods.
The report also highlighted that the total employment losses globally due to counterfeit and piracy stood at 2 to 2.6 million jobs in 2013 and is expected to rise to 4.2 to 5.4 million jobs in 2022, suggesting an approximate increase of 110%.
The existence and operation of illicit markets such as smuggling and counterfeiting has been an enduring problem that has escalated in scope and magnitude, impacting industries, government, economies and, the health and safety of the consumers.
According to recent FICCI report, ‘Illicit trade: Fueling Terror Financing and Organized Crime’, counterfeiting is the second largest source of income for criminal activities such as terrorism, globally.
Stressing on the need to increase consumer awareness, FICCI-CASCADE (Committee Against Smuggling and Counterfeiting Activities Destroying the Economy), an industry body working on addressing the issue of illicit trade activities in the country organized a seminar in Hyderabad today on the theme of ‘Combating Counterfeiting and Smuggling – An Imperative to Accelerate Economic Development’.