FICCI CASCADE Flags Transnational Risks Of Illicit Economies, Seeks Stronger Enforcement

New Delhi, Dec 17 (KNN) Federation of Indian Chambers of Commerce & Industry (FICCI)-Committee Against Smuggling and Counterfeiting Activities Destroying the Economy (CASCADE) on Tuesday organised a capacity-building programme for police officers on ‘Illicit Trade: Enforcement Challenges & Solutions’ at the Specialised Training Centre, Rajendra Nagar, Delhi. 

The programme brought together over 60 senior police officials and industry representatives to deliberate on the growing challenge posed by counterfeiting, smuggling and other illicit trade activities.

Focus on Enforcement Preparedness

Addressing the participants, Yogesh Malhotra, Assistant Commissioner of Police, Specialised Training Centre, Delhi Police, said such initiatives are critical in strengthening the skills, preparedness and operational effectiveness of law enforcement agencies. 

“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,” Malhotra added.

Economic and Public Health Concerns

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.”

Size and Impact of Illicit Markets

According to a FICCI CASCADE report titled ‘Challenging Landscape of Illicit Trade: How Changing Factors of Consumption Affect Illicit Markets in Five Key Industries in India’, the estimated size of the illicit market across five sectors—FMCG packaged goods, personal and household care, alcohol, tobacco, and textiles and apparel—stands at approximately Rs 7.97 lakh crore.

The report estimates the illicit textiles and apparel market at Rs 4.04 lakh crore, accounting for over 50 per cent of total illicit trade. 

Illicit markets in FMCG packaged foods and personal and household care goods are estimated at Rs 2.24 lakh crore and Rs 73,813 crore, respectively. 

The study notes that illicit trade distorts competition, undermines legitimate businesses and significantly reduces government tax revenues, with particularly severe impacts in sectors such as tobacco and alcohol due to higher tax regimes.

Ongoing Awareness Efforts

FICCI CASCADE said it has been working closely with government agencies, industry bodies, enforcement officials, legal professionals, consumer organisations and youth groups to raise awareness about the economic and social impact of counterfeiting and smuggling. 

(KNN Bureau)